The S-P BSE Sensex and NSE Nifty 50 indexes staged a strong rally on Tuesday led by buying interest in banking and financial services heavyweights HDFC, HDFC Bank, ICIC Bank, Kotak Mahindra Bank and Bajaj Finance.
The benchmarks staged a gap up opening taking cues from strong closing of the US markets which saw Dow Jones, Nasdaq and S-P 500 rising between 1.6-2.3 per cent each.
The Sensex rose as much as 650 points and Nifty 50 index touched an intraday high of 11,680.The Sensex ended 600.87 points higher at 39,574.57 and Nifty 50 index rallied 159 points or 1.38 per cent to close at 11,662.40.Eight of 11 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty Financial Services index's over 3 per cent gain.
Banking, auto, media, realty and private sector lenders also witnessed good buying interest.On the other hand, metal, energy, FMCG and pharma shares faced some selling pressure.Mid- and small-cap shares underperformed their larger peers as Nifty Midcap 100 index rose 0.4 per cent and Nifty Smallcap 100 index advanced 0.6 per cent.Tata Motors was top Nifty gainer, the stock rose 8 per cent to Rs 144 after CLSA maintained its buy call on the stock for target of Rs 220.HDFC gained over 8 per cent to close at Rs 1,934 on the back of heavy volumes.
HDFC alone contributed 245 points towards the Sensex.Adani Ports, Mahindra - Mahindra, IndusInd Bank, Asian Paints, HDFC Bank, Bajaj Finance, Bajaj Finserv, UltraTech Cement and ICICI Bank also rose between 2-3.5 per cent each.On the flipside, Britannia Industries, Coal India, Wipro, Hindalco, Tata Steel, Eicher Motors and Nestle India were among the notable losers.Overall market breadth was positive as 1,506 shares were advancing while 1,191 were declining on the BSE.