The latest upward trajectory is bolstered by gains in the banking sector, with private banks witnessing a rebound from a recent sharp correction.
Indian stock markets continued their bullish trend for second day in a row on Tuesday on the back of profits in index majors HDFC twins, Infosys and Reliance Industries amid a positive trend in global markets.
The S&P BSE Sensex ended 1,128.08 points or 2.30 per cent higher at 50,136.58 with HCL Tech being the top gainer as it rose over 4 per cent.
Similarly, Nifty50 surged 337.80 points or 2.33 per cent to 14,845.10.
In the Sensex pack, other gainers included HDFC Bank, Infosys, NTPC, Nestle India, TCS and HUL.
On the other hand, M&M, Bharti Airtel and Axis Bank were the laggards.
Except for today’s depreciation, the INR has remained quite steady even though the dollar index rose. Also when the US 10-year bond yields has spiked sharply India’s 10-year bond yield has remained quite stable.
These two factors could act in India’s favour and help Indian equities outperform its peers in the emerging markets, said Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities.
The recent correction could be due to rising COVID-19 cases and year-end phenomenon wherein retail and HNI investors would have avoided taking any fresh positions, he said, adding that the start of new settlement for FY22 and forthcoming Q4 earnings seasons could be the reasons for fresh investor interest in stocks.
US markets, especially the Dow Jones and S&P 500 are showing firm uptrend due to the ongoing stimulus and faster vaccination drive which could also be one of the reasons for our markets to inch upwards, Oza noted.
In the broader markets, the BSE MidCap and SmallCap ended marginally higher at 0.98 per cent and 1.3 per cent respectively.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a positive note.
Stock exchanges in Europe were also trading with significant gains in mid-session deals.
Meanwhile, the global oil benchmark Brent crude was trading 0.49 per cent lower at USD 64.60 per barrel.