BENGALURU: Equity indices moved higher on Tuesday, as investors cheered strong factory activity data from Asia's third-largest economy, with banking stocks offering support after the sector's heavyweights reported upbeat earnings.
The benchmark BSE sensex surged over 400 points; while the broader NSE Nifty eyed 11,800. Both the indices witnessed more than a per cent rise in early trade.
India's factory activity expanded at its fastest pace in over a decade in October, a private survey showed, as its demand recovered from the coronavirus-led disruptions.
The Nifty banking index rose 2.2 per cent, led by a 3.3 per cent gain in heavyweight stock ICICI Bank. The lender's shares are up for a second session following its upbeat earnings announcement on Saturday.
Banks and financial stocks have the biggest weight on the Nifty among sectors of about 35 per cent.
India's biggest lender by assets, SBI, was up 2.4 per cent ahead of its earnings report scheduled for Wednesday.
Meanwhile, Reliance Industries fell for a second straight session, shedding 1.5 per cent.
In the previous session, sensex settled 144 points or 0.36 per cent higher at 39,758, while Nifty advanced 27 points or 0.23 per cent to 11,669.
Exchange data showed that foreign institutional investors bought equities worth Rs 740.61 crore on a net basis on Monday.
India trade set up looks to be moderately good as of now mainly on global cues, Arjun Yash Mahajan - head - Institutional Business at Reliance Securities told news agency PTI.
However, he expects the market to remain volatile for the day ahead of the US presidential election and rise in Covid-19 cases globally.