The benchmark BSE S&P Sensex on Tuesday gained 115 points to close at 19,439.48 amid a smart recovery in the rupee and on the back of firm global cues.
The stock markets mirrored the currency’s movement, which bounced back from a record low of 61.21 yesterday after SEBI and the Reserve Bank of India announced steps to curb speculative trade in currency derivatives, brokers said.
There was across-the-board buying as all 13 sectoral indices closed between 0.04 per cent and 1.93 per cent higher, with consumer durables, power, realty, capital goods, pharma and banking stocks taking the lead.
According to analysts, the market seemed to be consolidating above the 19,000 level ahead of first-quarter results starting later this week. Software services giant Infosys is scheduled to report its Q1 results on Friday.
“In the coming days, we could see stock-specific movements due to quarterly results,” said Nagji K Rita, Chairman & MD, Inventure Growth & Securities. “Overall, the markets could move sideways with an upward bias. The markets may pick up volatility as it approaches the end of this week when the IIP data would be announced.”
Gains in HDFC Bank, Sun Pharma, L&T, Infosys, RIL, HDFC, ICICI Bank, SBI, Bajaj Auto, Dr Reddy’s Lab and BHEL supported the Sensex.
The 30-share barometer opened higher, in line with higher Asian cues on the back of a strong closing on Wall Street yesterday, and remained in positive terrain to settle at 19,439.48, adding 114.71 points or 0.59 per cent. Yesterday, the Sensex dropped 0.88 per cent.
The 50-share CNX Nifty on the NSE gained 47.45 points to end at 5,859.00. The SX40 index on the MCX—SX climbed 62.75 points, or 0.54 per cent, to 11,598.19.
The rupee gained 48 paise to 60.13 against the dollar in early trade at the Interbank Foreign Exchange market.
Asian stocks closed higher after Alcoa Inc. started the US earnings season with results that beat analyst estimates.
Key benchmark indices in China, Hong Kong, Singapore, Japan, South Korea and Taiwan rose by 0.37 per cent to 2.58 per cent.
European markets were higher in early trade after Alcoa’s earnings and as euro-zone finance ministers agreed on aid disbursement for Greece. The CAC was up by 0.79 per cent, the DAX by 1.18 per cent and the FTSE by 1.03 per cent.
In the domestic market, 22 Sensex scrips gained.
The major gainers were Sun Pharma (3.57 pc), BHEL (2.22 pc), Bajaj Auto (2.29 pc), Sterlite (1.88 pc), Dr Reddy’s Lab (1.82 pc), Larsen (1.70 pc), NTPC (1.43 pc), HDFC Bank (1.27 pc), Wipro (1.17 pc), SBI (1.01 pc) and Infosys (0.97 pc).
Jindal Steel dropped by 1.9 per cent, followed by M&M (1.18 pc), ONGC (0.79 pc) and HUL (0.76 pc).
Among the sectoral indices, S&P BSE-CD gained 1.93 per cent, followed by S&P BSE-Power 1.86 per cent, S&P BSE-Realty 1.65 per cent, S&P BSE-CG 1.47 per cent, S&P BSE-HC 1.44 per cent and S&P Bankex 1.26 per cent.
The market breadth turned positive as 1,306 stocks closed with gains and 1,014 finished with losses. The total turnover rose to Rs 1,751.70 crore from Rs 1,557.21 crore yesterday.