Equity benchmark Sensex jumped over 200 points in early trade on Tuesday, tracking gains in index majors ICICI Bank, HDFC and Reliance Industries amid a positive trend in global markets.
The 30-share BSE index was trading 228 points or 0.44% higher at 52,600.69 in initial deals, while the broader NSE Nifty advanced 69.50 points or 0.44% to 15,762.10.
NTPC was the top gainer in the Sensex pack, surging over 3%, followed by ICICI Bank, HDFC, PowerGrid, M&M, Axis Bank, L&T and UltraTech Cement.
On the other hand, Infosys, Tech Mahindra, HCL Tech and HUL were among the laggards.
In the previous session, Sensex ended 13.50 points or 0.03% lower at 52,372.69, while the Nifty inched 2.80 points or 0.02% higher to 15,692.60.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth ₹745.97 crore on Monday, as per provisional exchange data.
According to Binod Modi Head-Strategy at Reliance Securities, the domestic market looks to be good as of now.
“IIP data for May witnessed strong over 29% growth on base effects, while second wave impact made it to see 14% contraction compared to May 2019. Hence, policy support is still much needed to spur economic activities in coming months, and we believe RBI will continue to maintain its accommodative policy in the medium term,” he said.
Additionally, investors were upbeat as U.S. equities recovered from earlier losses and all three key indices ended with record highs as expectations of robust June quarter earnings lifted sentiments.
Elsewhere in Asia, bourses in Shanghai, Seoul, Hong Kong and Tokyo were trading with gains in mid-session deals.
Meanwhile, international oil benchmark Brent crude advanced 0.23% to $75.33 per barrel.