Buying in index heavyweight Reliance Industries and lenders took the benchmark equity indices higher for the fifth straight session on Tuesday as investors on Dalal Street focussed on better-than-expected earnings momentum, firm global cues and hopes of Covid-19 vaccine, shrugging off record rise in Covid-19 cases.

The 30-share BSE Sensex closed 511 points or 1.37 per cent higher at 37,930, while the 50-share Nifty settled 140 points or 1.27 per cent up at 11,162.

Vinod Nair, Head of Research, Geojit Financial Services said the benchmark indices again showcased volatility but the momentum was, in sync with global cues.

“EU leaders have finally reached an agreement on a massive stimulus plan to combat the pandemic impact. News about successful progression of Covid-19 vaccine trials also boosted the global markets while positive quarterly earnings results, especially from the leaders, provided an additional support to the Indian markets,” he added.

Energy-to-telecom behemoth Reliance Industries was the top contributor to Sensex’s gains as it advanced nearly 3 per cent. Financial counters including HDFC (up 4.36 per cent), ICICI Bank (4.41 per cent), Kotak Mahindra Bank (up 3.04 per cent) and automobile major Maruti Suzuki (up 4.53 per cent) together contributed over 300 points in today’s Sensex rally.


"Markets are inching higher with every passing day and Nifty may face the next hurdle around 11,250 level. The up move in the banking index is now helping the index to sustain at the higher levels while others are witnessing rotational buying. Traders should maintain their focus on trade selection and position management," said Ajit Mishra, VP - Research, Religare Broking.

Overall, the market breadth stood in favour of the bulls on the BSE, with 1,448 counters settling the day in the green. On the other hand, 1,243 stocks closed in the red, while 162 stocks stood unchanged. Broader markets underperformed flagship Sensex as BSE Midcap slipped 0.22 per cent while BSE Smallcap rose 0.24 per cent.

With a rally of 2.74 per cent, the BSE Energy index emerged was the top gainer on the sectoral chart. It was followed by BSE Oil & Gas (up 2.71 per cent), Bankex (up 2.71 per cent), Realty (up 2.03 per cent) and Power (up 1.96 per cent). BSE Telecom (down 1.85 per cent) and FMCG (down 0.72 per cent) indices were among the major sectoral losers.

In a scrip specific development, shares of Vodafone Idea cracked 8 per cent, a day after the Supreme Court said it was not reasonable to give 15 to 20 years period for paying AGR dues by telecom companies.

Bajaj Finance declined over 4 per cent after the company reported reported a 19 per cent drop in consolidated net profit at Rs 962.32 crore for the first quarter of the current fiscal on higher provisioning.