The Indian stock market started off on a firm note on positive global cues, and despite paring some gains in afternoon trade, rebounded amid high volatility and ended the day with notable gains on Tuesday.
Besides a firm trend in Asian markets, bargain hunting after recent sharp losses contributed to the market's surge today. Data showing heavy buying by FIIs in recent sessions aided sentiment to a notable extent. However, with investors treading cautiously at higher levels, amid worries about the economic situation in Europe and on the International Monetary Fund's warning about a slowdown of the Indian economy, the market gave up a good portion of its early gains.
The BSE benchmark Sensex, which rose to 18,885.84, gaining nearly 180 points, retreated to 18,722.05 in afternoon trade and eventually ended the day at 18,793.36, recording a gain of 84.38 points or 0.45%.
The Nifty index of the National Stock Exchange closed at 5704.60 with a gain of 28.60 points or 0.5%. The index touched a high of 5728.65 and a low of 5677.90 during the day.
Information technology, healthcare, consumer durables, FMCG and capital goods stocks mostly ended higher. Bank and metal stocks too had a fairly good session. Realty stocks ended on a mixed note. Automobile stocks had a good spell, but gave up gains as the day progressed. Power and oil stocks were mostly subdued.
Larsen & Toubro gained over 2%. Infosys ended 1.85% up. Sun Pharmaceutical Industries, Sterlite Industries, Hindustan Unilever, Cipla, ICICI Bank and Tata Steel gained 1% - 1.8%.
Hero Motocorp, Tata Power, HDFC Bank, ITC, Jindal Steel and State Bank of India also closed on a firm note.
Ultratech Cement, the top gainer in the Nifty index, moved up by about 2.7%. Ranbaxy Laboratories, Lupin, Kotak Bank, Sesa Goa, Power Grid Corporation and HCL Technologies also closed with strong gains.
GAIL India ended nearly 3% down. BHEL, Bharti Airtel, NTPC, Hindalco, Siemens, Tata Motors, ONGC, Jaiprakash Associates and Reliance Industries also closed weak.
Aban Offshore, Neyveli Lignite Corporation, Polaris and Unitd Spirits saw some strong buying on stock specific stories.
The market breadth was marginally positive. Out of 3009 stocks traded on BSE, 1561 stocks moved up. 1310 stocks declined and 138 stocks ended flat.