Sensex, Nifty surge on global recovery

After consolidating for the past two sessions, bulls were back in action as the Indian markets closed with healthy gains on Tuesday. Sentiment got a major boost after markets across the world recovered from recent lows.



The Shanghai Composite in China led the rally in Asia as investors snapped up battered stocks following the recent reversals. The index, which was Asia’s worst performing index in the first half of 2010, rose ~1.9% to close at 2,409.42, the most since June 21.

After opening on a quiet note India's main benchmarks traded in a narrow range for majority of the first half. But, the buying momentum picked up in early afternoon and the bulls never looked back.

"Today’s advance was broad based with most BSE sectoral indices managing to end with smart gains. The BSE Mid-Cap index and the BSE Small-Cap index added 0.6% each", says Amar Ambani Vice President Research IIFL.

Among the index heavyweights, M&M, TCS, HDFC Bank and Jindal Steel were the major gainers. On the other hand, RCom, JP Associates and ACC were the notable losers. Finally, the BSE Sensex advanced 173 points to end at 17,614 while the NSE Nifty added 53 points to close at 5,289.

European indices were also trading in the positive terrain, the DAX in Germany was up 1.2%, the CAC 40 index in France was up 1.7% and the FTSE in the UK was up 1.8%.

Among the BSE sectoral indices, BSE Metal index was the top gainer, up 2% followed by BSE Consumer Durable index, it was up 1.7% and BSE Banking index up 1.7%.

Outside the frontline indices, the big gainers in the broader market were Bharat Forge, IOB, Pantaloon Retail and Bosch. On the other hand, losers included United Phos, Apollo Hosp, Tulip Telecom and Mundra Port.