The market opened on a firm note this morning on positive global cues and kept moving higher and higher as the session progressed, with investors picking up stocks from across several sectors, betting on hopes the economy will be back on growth track soon.
Recent upbeat economic data from the U.S., and the resultant surge in global markets lifted sentiment to a notable extent. A weak report on India's services sector, released on Monday, has once again given room for hopes that the central bank may resort to another rate cut in the near future. Sustained buying by FIIs in recent sessions too contributed to the bullish sentiment.
The BSE benchmark Sensex, which spurted to 19,917.68, ended the day with a gain of 215.31 points or 1.09% at 19,888.95. The Nifty index of the National Stock Exchange closed at 6043.55, near the day's high of 6050.50, recording a gain of 72.50 points or 1.21%.
FMCG stocks, which saw some profit taking in recent sessions after a good spell, bounced back into the reckoning and ended on a high note on Tuesday. Shares from rate sensitive banking, automobile and realty sectors had a good outing as well.
Capital goods, consumer durables, healthcare and power stocks found some support. Oil stocks too edged higher after early weakness. However, information technology and metal stocks attracted profit taking and mostly traded flat.
Hero Motocorp, the top gainer in the Sensex, ended 3.7% up. Bharti Airtel gained around 3.2%. ITC, Tata Motors and Jindal Steel & Power gained 2.3% - 2.75%. HDFC Bank, ICICI Bank, State Bank of India, BHEL, Bajaj Auto, Hindustan Unilever, Larsen & Toubro and Cipla moved up by 1% - 2%.
Sun Pharmaceutical Industries, GAIL India, Reliance Industries, NTPC, Tata Steel, Hindalco, ONGC and Infosys also closed on a firm note.
DLF, Axis Bank, IDFC, Kotak Bank, Grasim Industries, IndusInd Bank, Punjab National Bank, Power Grid Corporation and ACC gained 1% - 3.5%.
Coal India declined by nearly 2%. Ambuja Cements, HDFC, Mahindra & Mahindra, Ranbaxy Laboratories, BPCL and Sesa Goa lost 0.2% - 0.6%.
Emami Limited shares moved up sharply after the company's board of directors approved a 1:2 bonus proposal. Glaxosmithkline Pharmaceuticals jumped more than 7% on upbeat results. Finolex Industries too moved up sharply on impressive results.
Sintex Industries gained nearly 5% following the company's net profit for the January - March 2013 quarter surging 66% to Rs 151 crore, as compared to the prior corresponding quarter. Allahabad Bank declined sharply after the bank reported a near 69% decline in net profit for the quarter ended March 2013.
The market breadth was positive. Out of 2551 stocks traded on BSE, 1353 stocks moved up. 1064 stocks declined and 134 stocks ended flat.