Mumbai: The benchmark Sensex closed 238 points higher on Tuesday despite the crude oil prices hitting a five month high. A sudden buying interest was seen during the later hours of the trade session after indices traded in a range-bound manner for the better part of the session.
Analysts said the gains came on the back of positive global cues and expectations of healthy corporate earnings from the IT and banking sectors.
The BSE Sensex closed 238.69 points or 0.62 per cent higher at 38,939.22, while the Nifty settled higher by 67.45 points or 0.58 per cent at 11,671.95.
The rupee too gained against the dollar despite surging crude oil prices, owing to Reserve Bank of India (RBI) intervention.
"RBI has sold dollar to keep the rupee in 68 to 70 range. That apart, some corporate inflows can also be reasons for the rupee surging," Anindya Banerjee of Kotak Securities told IANS.
The benchmark Brent Crude prices climbed above the $71 per barrel mark on Tuesday over supply concerns from war-torn Libya. The oil prices were already on the rise due to US sanctions on Iran and Venezuela which has curtailed global crude oil supply.
Moreover, the OPEC-led production cut also pushed up the prices.
IndiaBulls Housing Finance ended as the top loser on Nifty for the second consecutive day on Tuesday after announcing its merger on Friday with Lakshmi Vilas Bank. Asian Paints declined over 3 per cent on rising crude oil prices.
"Market gained after a range-bound movement in expectation of a turnaround in earnings growth led by Q4 FY19 results starting this week while positive global peers aided the market. Banks outperformed as outlook improved led by reduction in stressed assets, repo rate and pick up in credit growth," said Vinod Nair, Head of Research, Geojit Financial Services.
"But valuation is on a premium level while start of the first phase of polling may bring volatility in the market," he said.