Fall in the global crude oil prices eased inflation concerns helping the benchmark Sensex on Tuesday to rise about 338 points to 25,368.90, its biggest gain in more than two weeks.
Oil prices slipped on receding fears that the crisis in Iraq could result in a major supply disruption. US benchmark West Texas Intermediate fell 54 cents to USD 105.63 per barrel and Brent eased 63 cents to USD 113.69.
Firm Asian cues after data showed that Chinese manufacturing grew in June for the first time this year, too boosted the overall sentiment. Regional indices closed higher with gains of upto 1 per cent.
Equity brokers also said hectic short-coverings ahead of the expiry of June contract on Thursday also helped Indian indices Sensex and Nifty script a smart rebound.
The BSE 30-share Sensex resumed strong in line with firm Asian markets and gradually improved further to settle at 25,368.90, a rise of 337.58 points or 1.35 per cent. This is its biggest rise in absolute terms since June 6, 2014 when it had shot up by 376.95 points.
Before Tuesday, the Sensex had tumbled by 489.87 points in the previous four straight sessions on rising oil prices and forecasts of below-average monsoon rains.
The 50-issue CNX Nifty of the NSE today jumped 86.85 points, or 1.16 per cent, to end at 7,580.20.
Barring healthcare, 11 BSE sectoral indices closed with gains with realty, consumer durable, oil and gas, power, banking, metal and auto taking the lead.
“Softening in crude oil prices and positive global cues boosted the market sentiment. Metal and mining stocks also showed buying interest after China posted positive manufacturing data,” said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Ltd.
Heavyweights like HDFC, RIL, ITC, ICICI Bank, TCS, SBI, Tata Motors, HDFC Bank, L&T, Axis Bank, ONGC and Gail India attracted good buying interest.
Meanwhile, equity derivatives turnover at the BSE rose to over Rs.3.3 lakh crore level due to heavy volume in index options. .
European markets were trading lower in choppy trade after data showed German business confidence declined for a second month in June. Key benchmark indices in the UK and Germany moved down 0.10 per cent and 0.26 per cent while France’s CAC was quoting up 0.12 per cent.
Turning to the local market, 26 scrips out of the 30-share sensex pack ended higher while four others declined.
Jignesh Chaudhary, Head of Research, Veracity Broking Services said: “After falling for four days in a row, local equities closed up. Help from some bluechip companies here and better-than-expected manufacturing data from China, Japan and the United States also cheered the markets.”
Major Sensex gainers were Gail (4.56 per cent), HDFC (2.81 per cent), BHEL (2.48 per cent), SBI (2.24 per cent), Axis Bank (2.19 per cent) and Tata Power (2.07 per cent).
RIL (2.02 per cent), ITC (2.02 per cent), ICICI Bank (1.79 per cent), TCS (1.75 per cent), NTPC (1.61 per cent), Tata Motors (1.52 per cent), Maruti Suzuki (1.51 per cent) ONGC (1.40 per cent) and Bajaj Auto (1.21 per cent) also gained. Hero MotoCorp (1.06 per cent), Tata Steel (1.03 per cent) and Larsen & Toubro (1.00 per cent) ended higher too.
Among the S&P BSE sectoral indices, Realty rose by 3.16 per cent, followed by Consumer Durables 2.44 per cent, Oil&Gas 2.17 per cent, Power 2.03 per cent, Bankex 1.51 per cent, Capital Goods 1.25 per cent, FMCG 1.20 per cent, Metal 1.10 per cent and Auto 1.06 per cent.
Meanwhile, Foreign Portfolio nvestors (FPIs) sold shares worth a net Rs.214.49 crore yesterday as per provisional data from the stock exchanges.
Market breadth remained positive as 2,041 stocks finished with gains, 985 stocks ended lower. Total turnover rose to Rs.3,608.48 crore from Rs.3,022.95 crore on Monday.