The Indian stock market ended notably higher on Tuesday, with the Sensex snapping a six-day losing streak, as traders indulged in some hectic short-covering and bargain hunting ahead of near month derivatives expiry. A firm trend in global markets and higher crude oil prices amid hopes of a freeze in production helped as well.
Automobile, realty and metal stocks rallied sharply, recovering from recent battering. Stocks from oil, FMCG and consumer durables sections advanced as well. Select stocks from healthcare, information technology and telecom sectors edged higher. Power and capital goods were relatively subdued.
The BSE benchmark Sensex, which rose to 26,039.70 early on in the session, very nearly slipped into negative territory around noon, but recovered swiftly and gained in strength to close at 25,960.78 with a gain of 195.64 points or 0.76%. The Nifty50 of the National Stock Exchange ended up 73.20 points or 0.92% at 8002.30, after scaling a high of 8019.05.
In the forex market, the rupee was trading at 68.23 against the U.S. dollar around late afternoon, down 0.08% from its previous close of 68.17.
Automobile stocks Bajaj Auto (3.3%), Maruti Suzuki (3%), Hero Motocorp (2.35%), Tata Motors (1.75%) and Mahindra & Mahindra (1.5%) ended sharply higher. Eicher Motors and TVS Motor also posted strong gains.
Hindustan Unilever, Adani Ports, Wipro, HDFC, Tata Steel, Bharti Airtel, Asian Paints, Axis Bank, Lupin and Reliance Industries gained 1% - 2.6%.
Hindalco, up 6.25%, was the top gainer in the Nifty50 index. Zee Entertainment Enterprises gained 3.5% and UltraTech Cement firmed up 3%. Tata Motors DVR, Grasim Industries, Yes Bank, Tech Mahindra, Ambuja Cements, ACC, BPCL,
IndusInd Bank and Kotak Bank gained 1% - 2.6%.
Larsen & Toubro and BHEL, the capital goods sector majors, shed 1.5% and 3.3%, respectively. GAIL India declined 1.6%. NTPC, Dr Reddy's Laboratories and Power Grid Corporation ended modestly lower.
IRB Infrastructure Developers declined on disappointing results. Sobha edged lower on weak results.
Shoppers Stop, Vedanta, Bliss GVS Pharma, Suven Life Sciences and Asian Oilfield saw some strong buying on stock specific news.
The market breadth was strong. Out of 2746 stocks traded on BSE, 1457 stocks moved higher. 1099 stocks declined and 190 stocks ended flat.