Sensex Reclaims 36,000, Nifty Above 10,900; Adani Ports, RIL Lead Gains

Stock markets Sensex, Nifty on Tuesday: At 12:28 pm, TCS shares traded at Rs 1,893.60.

The domestic stock markets rallied on Tuesday with the Sensex reclaiming the 36,000 mark and the Nifty recapturing at 10,900 level, according to a report by news agency Press Trust of India (PTI). At 12:25 pm, the S&P BSE Sensex traded at 36,186.33, with a gain of 251.61 points or 0.70 per cent while the broader Nifty50 was at 10,925.05 level, up 72.15 points or 0.66 per cent. Thirty three out of 50 Nifty stocks traded in the green. Hindalco (up 2.68 per cent), Reliance Industries (up 2.46 per cent), Bajaj Auto (up 2.23 per cent), Tata Steel (up 2.19 per cent), and Wipro (up 2.17 per cent) led the gains in the Nifty pack.

However, despite the gains, analysts believe that a correction may follow.

"The hope for the bulls is placed near 11,000 mark - if the bulls manage to surpass the 11,000 mark then we may see an optimistic view towards the uncharted territory which brings the confidence of retail as well as foreign institutional investors towards the Indian market. The movement of the dollar has been ranging between 68-70 in which 70 would be a big hurdle," said said Dyaneshwar Padwal AVP Technical Analysis, KIFS TradeCapital.

(Banking stocks led the gains as the 10 out of 12 PSU banking stocks gained in trade.)

Some experts are bullish on the June quarter results season.

"The Sensex and Nifty, in the past two-three months are driven by few large heavyweights like HDFC Bank, TCS, RIL, HDFC, Infosys not holding up close to the all-time highs. However, the levels of the indices hides the carnage in the broad markets where stocks have corrected by 20-50 per cent. Rarely does one see this kind of polarization in the markets. The current results season should be good with technology, private banks/NBFC's, auto and consumer companies likely to report results that will meet the Street expectations but may also positively surprise," said Vivek Mavani, SEBI Registered investment Advisor.

At 12:28 pm, TCS shares traded at Rs 1,893.60 with a gain of 0.56 per cent.

Banking stocks led the gains as the 10 out of 12 PSU banking stocks gained in trade. All sectoral indices barring Nifty FMCG and Nifty Pharma traded in the green.

The top laggards in the Nifty pack were Sun Pharma (down 1.65 per cent), Kotak Mahindra Bank (down 1.34 per cent), Hindustan Petroleum (down 1.21 per cent), Indiabulls Housing Finance (down 0.95 per cent), and Dr Reddy's Laboratories (down 0.71 per cent).

In the global markets, Asian shares rallied for a third session as hopes for upbeat corporate earnings buoyed Wall Street, while several high-profile resignations from Britain's government kept sterling on the defensive, according to a Reuters report. MSCI's broadest index of Asia-Pacific shares outside Japan put on 0.4 per cent in early trade, adding to a 1.3 per cent rise on Monday. Japan's Nikkei climbed about 1 per cent and South Korea 0.5 per cent, while E-mini futures for the S&P 500 firmed 0.2 per cent.

In overnight trade in the US, the Dow rose 1.31 per cent, while the S&P 500 gained 0.88 per cent and the Nasdaq 0.88 per cent.

On Monday, foreign portfolio investors sold net equities worth Rs 569.91 crore while the domestic institutional investors bought shares worth Rs 740.39 crore. (With Agencies Inputs)