Mumbai: Equity benchmarks Sensex and Nifty rose nearly 1 percent on Tuesday, extending their rally for a second consecutive session as crude oil prices fell below USD 100 a barrel and investors bought banking stocks and Reliance Industries.
The 30-share BSE Sensex gained 685.34 points, or 0.95 percent, to close at 73,067.81. The NSE Nifty advanced 220.35 points, or 0.98 percent, to settle at 22,776.10.
Brent crude, the global oil benchmark, fell 1.70 percent to USD 98.59 a barrel, easing concerns over elevated energy costs.
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"Indian equities extended their rebound for a second consecutive session on Tuesday, with benchmark indices closing higher as further decline in crude oil prices eased some of the macroeconomic pressure weighing on sentiment," said Ponmudi R, CEO of Enrich Money.
Trent led the Sensex gainers, surging 12.78 percent. Kotak Mahindra Bank, Hindustan Unilever, Reliance Industries, InterGlobe Aviation, Eternal and Asian Paints also advanced. Tech Mahindra, Titan, Bajaj Finance and ITC were among the laggards.
Vinod Nair, Head of Research at Geojit Investments Ltd, attributed the decline in crude prices to a large G7 stockpile release and alternative pipeline supplies that helped offset disruptions to vessel movements through the Strait of Hormuz.
"Coupled with strong Q2 business updates from financials and retail along with supportive global cues, the decline in oil prices improved investors' sentiment and supported a rebound from the oversold levels," Nair said.
Broader markets also gained, with the BSE SmallCap Select index rising 1.25 percent and the MidCap Select index advancing 1 percent.
Telecommunication led the sectoral gains, climbing 2.33 percent, followed by Capital Goods at 1.79 percent, Industrials at 1.62 percent and FMCG at 1.57 percent. Power and Oil & Gas gained 1.21 percent each, while Insurance rose 1.06 percent. Realty, IT and PSU Bank were among the sectors that ended lower.
Asian markets were mixed, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng closing higher, while South Korea’s Kospi declined. European markets traded higher, following gains on Wall Street on Monday.
The rally came despite continued foreign selling. Foreign institutional investors offloaded equities worth Rs 4,699.14 crore on Monday, according to exchange data.
In the previous session, the Sensex had gained 472.77 points and the Nifty 133.80 points.
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