Indian benchmark equity indices Sensex and Nifty began the trade on an optimistic note on Tuesday amid global hopes of a US Fed rate cut, and later ended on a high too as IT stocks saw a rebound.
The Sensex rose by 314 points and Nifty closed above 24,800 on Tuesday as a rebound in IT shares was seen amid hopes of a rate cut by the US Federal Reserve later this month.
This was the second day in a row that the 30-share BSE Sensex climbed 314.02 points or 0.39 per cent to settle at 81,101.32. During the day, it had surged 394.07 points or 0.48 per cent to 81,181.37.
The 50-share NSE Nifty rose by 95.45 points or 0.39 per cent to 24,868.60, registering its fifth day of gain.
From the Sensex firms, Infosys jumped 5.03 per cent after India's second-largest IT services company said its board will consider a proposal for buyback of equity shares on September 11.
Others counted amongst the gainers were Tech Mahindra, Adani Ports, HCL Tech, Tata Consultancy Services and Bajaj Finserv.
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However, Trent, Eternal, UltraTech Cement and NTPC were among the laggards.
In Asian markets, meanwhile, South Korea's Kospi and Hong Kong's Hang Seng settled in positive territory while Japan's Nikkei 225 index and Shanghai's SSE Composite index ended lower.
European markets were trading on a mixed note while the US markets ended higher on Monday.
Domestic trade analysts credited Infosys and other IT stocks’ rally for the markets ending in positive territory.
"Markets closed higher on Tuesday, buoyed by strength in IT stocks following Infosys' announcement that its board will consider a share buyback on September 11. The news lifted sector sentiment," said Hariprasad K, Research Analyst and Founder – Livelong Wealth.
In the coming days too, the Indian equity benchmarks are expected to show regaining momentum on the back of GST reforms as well as hopes of a quarter-point Fed rate cut that have supported investor sentiment.
"Nifty is expected to trade with a positive bias despite volatility, supported by hopes of a quarter-point Fed rate cut on 17th September and the possibility of further cuts in the year’s remaining meetings, keeping bears at bay," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
"Market is slowly regaining momentum on expectations of earnings boost from GST reforms. Clearly, autos are the major beneficiaries of the GST cut, and rightly, the market has responded positively. News of huge demand for automobiles post-September 22 will keep the auto stocks resilient despite the recent run up," added VK Vijayakumar, Chief Investment Strategist, Geojit Investments Limited.
Foreign Institutional Investors (FIIs) offloaded equities worth ₹2,170.35 crore on Monday, while Domestic Institutional Investors (DIIs) bought stocks worth ₹3,014.30 crore, according to exchange data.
Global oil benchmark Brent crude climbed 0.80 per cent to USD 66.55 a barrel.
On Monday, the Sensex edged higher by 76.54 points or 0.09 per cent to settle at 80,787.30, and the Nifty ended marginally higher by 32.15 points or 0.13 per cent at 24,773.15.
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