Equity benchmark indices maintained a bullish momentum on Tuesday and closed over 1 per cent higher as value buying pushed up auto, metal and banking scrips.
Investors hoped for a speedy economic recovery from the second wave of Covid-19 with pharma companies tying up for vaccine manufacturing. Besides, industrial activities have largely continued even during the lockdown.
With restrictions likely to ease, consumer demand is expected to make a comeback, said Hemang Jani, Head of equity strategy, broking and distribution at Motilal Oswal Financial Services.
At the closing bell, the BSE S&P Sensex was up by 613 points or 1.24 per cent at 50,193 while the Nifty 50 surged by 185 points or 1.24 per cent to 15,108.
Most sectoral indices at the National Stock Exchange were in the positive zone with Nifty auto gaining by 3.2 per cent, metal by 1.6 per cent, private bank by 1.5 per cent and financial service by 1.4 per cent. Nifty PSU bank, pharma and FMCG though were in the negative zone.
Among stocks, Mahindra & Mahindra accelerated by 5.7 per cent to Rs 797.05 per share while Bajaj Auto was up by 5.2 per cent, Tata Motors by 3.4 per cent and Eicher Motors by 3.3 per cent.
Bajaj Finance rose by 4.5 per cent, HDFC Bank by 2.6 per cent, Titan by 4.9 per cent and Adani Ports by 3.4 per cent and Tata Steel by 2.5 per cent.
However, Bharti Airtel dropped by 2.3 per cent to close at Rs 536.80 per share. ITC, Tata Consumer Products, Dr Reddy’s, Grasim and State Bank of India also traded with a negative bias.
Meanwhile, Asian shares rose after shrugging off worries about an increase in regional coronavirus infections and a subdued session on Wall Street.
Japan’s Nikkei was up by 2.09 per cent as investors shrugged off GDP data to buy battered stocks.
Hong Kong’s Hang Seng jumped by 1.42 per cent as energy and telecom firms gained, and South Korea’s Kospi was up by 1.23 per cent.