On Tuesday the BSE Sensex rose as much as 339 points today, tracking positive cues from other Asian markets. Market sentiment was also upbeat after government data revealed that retail inflation dropped to an 18-month low of 2.19% in December 2018, creating headroom for the RBI to cut interest rate in its monetary policy review next month. The 30-share index jumped as much as 339 points to 36,192 in early trade.
Similarly, the NSE Nifty reclaimed the 10,800 mark by rising 93.65 points, or 0.87 per cent, to 10,831.25.
On Monday, after a volatile session, the Sensex had settled 156.28 points, or 0.43 per cent, down at 35,853.56, while the Nifty fell 57.35 points, or 0.53 per cent, to finish at 10,737.60.
In morning session on Tuesday, the top gainers in the Sensex pack included Yes Bank, Reliance, Infosys, Bajaj Auto, Asian Paints, ONGC, Bajaj Finance, SBI and TCS. Yes Bank shares were up 4.4% while Reliance Industries and Infosys shares rose above 2%.
According to analysts, quarterly numbers and management commentary from India Inc will be keenly watched by market participants, and will play a crucial role in further upside.
Besides positive cues from other Asian markets, investor mood was boosted by encouraging macroeconomic numbers released on Monday.
Retail inflation declined to an 18-month low of 2.19% in December 2018 mainly on account of sliding prices of fruits, vegetables and fuel.
Another set of official data showed that the wholesale inflation too eased to an eight-month low of 3.80% in December.
Additionally, US-China trade war, rising crude oil prices, foreign fund outflow and the upcoming general elections will keep the market volatile in the short term, said Hemang Jani, Head – Advisory of Sharekhan.
On a net basis, foreign portfolio investors (FPIs) sold shares worth Rs 732.46 crore Monday, while domestic institutional investors (DIIs) were net buyers to the tune of Rs 527.49 crore, provisional data available with BSE showed.
The rupee, meanwhile, breached the 71 mark against US dollar. The benchmark Brent crude futures rose 1.17 per cent to $59.68 per barrel.
On Wall Street, however, Dow Jones Industrial Average ended 0.36% lower at 23,909.84 points on Monday.
Globally, elsewhere in Asia, Japan’s Nikkei jumped 0.91%, Hong Kong’s Hang Seng was up 1.90%, Kospi rose 1.54% and Shanghai Composite Index was trading 0.96% higher in early trade.