After opening on a somewhat listless note on mixed global cues and
moving in a tight band around the unchanged line till around mid
afternoon, the Indian stock market rallied sharply on some hectic buying
in the final hour to end with strong gains on Tuesday.
The rupee's sharp recovery from a two-month low and a firm trend in European markets pulled the market out of the red.
The BSE benchmark Sensex, which rallied to 25,545.88 in late afternoon trade, after having tumbled to 25,104.50 earlier in the session, ended the day with a gain of 330.71 points or 1.31% at 25,521.19.
The Nifty index of the National Stock Exchange closed at 7631.70, gaining 98.15 points or 1.3%. The index scaled a low of 7509.25 and a high of 7637.60 intraday.
The rupee, which declined to a two-month low of 60.47, recovered well and was hovering around 60.05 by the time equity markets closed for the day.
Bank, capital goods, power, oil and metal stocks ended with impressive gains. Sugar stocks rallied amid expectations of a turnaround in the sector. A few stocks from automobile, information technology and consumer durables sectors closed on a firm note. FMCG and healthcare stocks ended mostly flat.
ONGC ended nearly 4.5% up. Axis Bank, Asian Paints, Punjab National Bank, IndusInd Bank, Sesa Sterlite and Bank of Baroda gained 3% - 4%.
GAIL India and BHEL ended nearly 3% up. Coal India gained 2.8%. ICICI Bank, Reliance Industries, BPCL, State Bank of India, Larsen & Toubro and Tata Motors advanced by over 2%.
Ultra Tech Cement, NTPC, Tata Steel, Power Grid Corporation, Cairn India, HCL Technologies, Ambuja Cements, Bharti Airtel, Tata Power, IDFC, HDFC Bank, Maruti Suzuki, DLF and ACC also ended ona firm note.
Mahindra & Mahindra, United Spirits, Hero Motocorp, Hindustan Unilever, Dr Reddy's Laboratories, Jindal Steel & Power and Bajaj Auto declined by 0.4% - 1.3%.
Man Infrastructure, State Bank of Travancore, Pennar Industries and Arvind Remedies saw some strong buying on stock specific news.
The market breadth was strong. Out of 3110 stocks traded on BSE, 2047 stocks moved up. 952 stocks declined and 111 stocks ended flat.