The market, which opened on a weak note, has recovered smartly thanks to some strong buying at several front line counters and is currently up in positive territory with modest gains. Still, the mood remains extremely cautious amid renewed concerns about the financial situation in Europe following the Greek government seeking a referendum on the bail-out package.
The Sensex, which tumbled to 17,337.65 in early trades, has rallied to 17,586 now, recording a gain of 105.17 points or 0.6% now.
The Nifty index of the National Stock Exchange is up 31.60 points or 0.6% at 5289.55, around 85 points off the day's low of 5204.95.
Oil stocks are leading the rally from lower levels. Healthcare, FMCG and information technology stocks are edging higher. Realty, automobile and power stocks have moved off their lows. Bank, capital goods and metal stocks too have recovered well on strong support at lower levels.
Bajaj Auto (1.75%), Reliance Industries (1.3%), Mahindra & Mahindra (1.2%), HDFC Bank (1.1%) and Jaiprakash Associates (1%) have posted strong gains. Sun Pharmaceuticals, Tata Consultancy Services, ITC, State Bank of India, ONGC, DLF and Infosys are also up with notable gains.
Chambal Fertilizers & Chemicals has rallied to Rs 95.30, gaining 5.3% in the process. Rashtriya Chemicals & Fertilizers, Reliance Communications, Tech Mahindra, Crisil, Marico, Ashok Leyland, Gujarat Gas, Reliance Infrastructure, Jet Air India, Thermax, HCL Technologies, Pantaloon Retail are also up with impressive gains. Jubilant Foodworks, Sun TV Network and Reliance Capital are up nearly 2%.
Piramal Healthcare is up 2.5% at Rs 369 following an announcement from the company that it has settled a patent litigation over Baxter Healthcare's anesthetic drug Suprane
Divis Laboratories Ltd shares are trading firm on good results. The stock, which spurted to Rs 785 earlier in the day, is currently up 1.2% at Rs 768. The company has posted a net profit of Rs. 1060.50 million for the quarter ended September 30, 2011 as compared to Rs. 729.60 million for the quarter ended September 30, 2010. Total Income has increased from Rs. 2628.10 million for the quarter ended September 30, 2010 to Rs. 3768.20 million for the quarter ended September 30, 2011.
Ambuja Cements Ltd announced on Tuesday that it posted a net profit of Rs. 1714.80 million for the quarter ended September 30, 2011 as compared to Rs. 1520.90 million for the quarter ended September 30, 2010. The stock is currently trading at 154.70, its previous closing price.