Markets climb for 2nd day; Sensex soars 934 pts amid firm global cues

Mumbai, Jun 21 (PTI) The Sensex and Nifty advanced for the second straight session on Tuesday, powered by across-the-board buying amid a bullish trend in global equities.

Index major Reliance Industries and IT stocks saw robust demand after their recent hammering, even as a depreciating rupee and hawkish global central banks weighed on sentiment, traders said.

The 30-share BSE Sensex zoomed 934.23 points or 1.81 per cent to settle at 52,532.07. During the day, it rallied 1,201.56 points or 2.32 per cent to 52,799.40.

Similarly, the NSE Nifty climbed 288.65 points or 1.88 per cent to finish at 15,638.80.

Barring Nestle India, all Sensex components closed in the green. Titan rallied 5.92 per cent, followed by SBI, TCS, HCL Technologies, Dr Reddy's, Tata Steel, Wipro, Infosys, ITC and Tech Mahindra.

"Absence of fresh selling triggers in the domestic and global economy along with falling commodity prices relieved the heavily discounted equity market to showcase recovery. The recovery indicates that the current uncertainties of inflation and monetary policy tightening have been factored in.

"However, with the highly sensitive nature of the current equity market, even the slightest inconvenience can trigger volatility," said Vinod Nair, Head of Research at Geojit Financial Services.

In the broader market, the BSE smallcap gauge rallied 2.99 per cent and the midcap index jumped 2.42 per cent.

All the BSE sectoral indices ended with gains, with oil & gas index jumping the most by 5.96 per cent, followed by energy (4.95 per cent), consumer durables (3.93 per cent), metal (3.90 per cent), realty (3.79 per cent) and utilities (3.58 per cent).

As many as 2,502 stocks advanced and 831 declined, while 129 remained unchanged.

"Participants are keenly eyeing the US Fed chair's speech for cues and the progress of the monsoon is also on the radar. A decisive move above 15,700 in Nifty can further fuel the rebound to the 16,000 zone, else the decline would resume.

"Stocks, on the other hand, are offering opportunities on both sides so traders should plan accordingly," said Ajit Mishra, VP - Research, Religare Broking Ltd.

World stocks marched higher on bargain hunting, even as monetary policy tightening by central banks and risks of slowing global growth remained an overhang.

Elsewhere in Asia, markets in Hong Kong, Tokyo and Seoul ended with smart gains, while Shanghai settled in the red.

European bourses were trading in the green in mid-session deals.

The US markets were closed on Monday for a holiday.

Meanwhile, international oil benchmark Brent crude jumped 1.57 per cent to USD 115.9 per barrel.

The rupee declined 12 paise to close at 78.10 (provisional) against the US dollar on Tuesday.

Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold shares worth Rs 1,217.12 crore on Monday, as per exchange data.