Mumbai: Equity benchmark indices moved up sharply again on Tuesday as inflows from foreign institutional investors turned on the market mood with a focus on prospects of the current government in the ensuing General Elections.
The sentiment also got a boost by a strong rupee and gains in Asian stocks after the European Commission agreed to changes in a Brexit deal ahead of a vote in the British parliament.
The BSE S&P Sensex closed 482 points higher at 37,536 while the NSE Nifty 50 was up 133 points at 11,301. Both the Sensex and the Nifty have climbed about 2.7 per cent so far this year.
Several market experts expect the rally to continue in coming weeks.
Opinion polls show the present government could return to power for the second term amid rising nationalism after armed conflicts with Pakistan, and broad support for Prime Minister Narendra Modi’s decisive policy reforms.
Tuesday’s gains were driven by market heavyweights Reliance Industries Ltd, ICICI Bank, and Larsen & Toubro.
Metal, oil and gas, banking and energy stocks were the prominent winners. Infrastructure and realty stocks also rose.
The shares of Bharti Airtel closed 4.55 per cent high at Rs 349 each after it said will slash its stake in Bharti Infratel (the telecom tower company) by more than half to 18.3 per cent.
Meanwhile, Asian shares were mostly in the green territory. On Monday, European Commission head Jean-Claude Juncker agreed to additional assurances in an updated Brexit deal with British Prime Minister Theresa May.