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NEW DELHI: Private bank stocks and blue chip Reliance Industries lifted key benchmark indices by over half a per cent on Tuesday, helping recoup the previous session's losses.
The market for the most part meandered through gains and losses, but a recovery in European shares along with rupee's rise against the dollar gave investors some confidence.
Driven by banking and auto shares, the BSE benchmark Sensex rose 239 points, or 0.62 per cent to 38,939 while its NSE counterpart Nifty ended at 11,672, up 67 points or 0.58 per cent.
The advance-decline ratio, however, leaned more towards the sellers side, indicating underlying bearishness in market.
How did the market look like todayOf the Sensex scrips, 25 settled on the higher side while five slipped.
YES Bank with gains of 4.08 per cent topped the chart.
Tata Motors, ICICI Bank, Bajaj Auto, Coal India and HCL Tech trailed, rising up to 3 per cent.
Meanwhile, Asian Paints lost big by 3.54 per cent after CLSA downgraded the stock to 'Sell' from 'Outperform' while reducing the target price to Rs 1,400 from Rs 1,565.
The brokerage has cut the EPS estimate by 2-5 per cent led by revenue cuts.
Sectorally, barring telecom and consumer durables, all other indices ended in the green.
Realty, auto and bankex were the best performing sectors, rising over a per cent each.
The day was not as rosy for midcap and smallcap indices.
Though BSE Midcap managed to end on a positive note, up 0.15 per cent, the Smallcap index declined by 0.10 per cent.
What made the stocks come alive Rupee reboundsThe rupee surged by as much as 39 paise against the dollar on Tuesday even as oil prices topped a 5-month high.
The domestic currency hit intra-day high of 69.28 against the greenback.
It looked to snap its four-day losing streak.
European shares march aheadBank stocks helped European shares shrug off early weakness on Tuesday, but gains were kept in check by a drop in shares of Airbus and its suppliers after the US ratcheted up a trade dispute with the European Union over aircraft subsidies.
A rise in bank shares following two days of losses helped the pan-region STOXX 600 index up 0.4 per cent in thin trade.
Most European bourses posted small gains.
The positive sentiment in global peers rubbed off on Indian equities, too.
Expert TakeVinod Nair, Head of Research, Geojit Financial Services
Market gained after a range-bound movement on expectations 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.
But valuation is at a premium level while start of the first phase of polling may bring volatility to the market.
