Sensex Surges Over 250 Points, Nifty Near 11,450; IT, Banks Lead Gains

The domestic stock markets extended their gains by afternoon trade on Tuesday as trade anxiety stemming from a plunge in the Turkish lira showed signs of easing. At 1:30 pm, the Sensex traded at 37,901.58, with a gain of 256.68 points or 0.68 per cent and the Nifty50 at 11,443.10, up 87.35 points or 0.77 per cent. Thirty-six out of 50 Nifty stocks advanced in trade. Sensex heavyweights Reliance Industries, ITC and ICICI Bank led the gains. The top five Nifty gainers were Yes Bank, Bajaj Finance, UltraTech Cement, Zee Entertainment Enterprises Limited, and Bajaj Finserv.

All sectoral indices of the National Stock Exchange traded with solid gains, led by IT and banking stocks.  

"There was a sharp reaction in the Indian markets on Monday to the fall in rest of Asia because of the Turkish uncertainty. Today, global markets have reversed and India is taking cues from that," news agency Reuters quoted Dhananjay Sinha, head of institutional research at Emkay Global Financial Services, as saying.

Meanwhile, in the forex market, the rupee touched an all-time low of 70.09 against the US dollar.

Experts advised traders to watch out for global cues. "The impetus in markets is still on the upside. Investors are advised to remain alert and keep a close watch on global cues and use every dip for accumulation," said Ritesh Ashar, Chief Strategy Officer, KIFS Trade Capital.

Asian share markets fought to regain their footing as tremors from the collapse of the Turkish lira ebbed, though sentiment took a fresh knock when Chinese economic data proved softer than expected, stated a report by news agency Reuters.

Retail sales, industrial output and urban investment all grew by less than forecast in July, a trifecta of disappointment that underlined the need for more policy stimulus in China.

The Shanghai blue chip index was off 0.6 per cent and MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.2 per cent.

Japan's Nikkei held onto its early 1.1 per cent gain, while Australian stocks added 0.8 per cent.

In overnight trade, the Dow ended down 0.5 per cent, while the S&P 500 lost 0.40 per cent and the Nasdaq 0.25 per cent.

On Monday, foreign portfolio investors sold net shares of the value of Rs 971.86 crore while domestic institutional investors purchased net equities of Rs 216.29 crore. The Sensex closed 224 points down at 37,644 while the Nifty ended 73 points lower at 11,355. (With Reuters inputs)