(RTTNews) - A sudden bout of buying in index heavyweights in the mid-session lifted the Indian market sharply up on Tuesday. Earlier in the day, the market pared early gains and slipped into the red for a brief period, weighed down by weak Asian markets after the U.S Federal Reserve chief Ben Bernanke warned of continued weakness and Japan's $81 billion stimulus program failed to cheer investors.
Elsewhere, continued selling pressure dragged the UAE stock markets down in early trading Tuesday. The DFM index, the benchmark for the Dubai Financial Market, slumped over 6% intraday after closing down 5.8% in the previous session, while in Abu Dhabi, the benchmark index was down over 3%.
However, European stocks reversed early losses to show modest gains and the U.S stock futures pointed towards a positive opening on Wall Street Tuesday morning.
The dollar resumed its slide against the yen and struggled versus the euro on Tuesday as Bernanke's comments about a sluggish U.S economic recovery put to rest speculation about an early rise in U.S. interest rates.
The dollar rebound could have helped lift hopes of more capital inflows into India and an extended stock market rally.
A change in sentiment helped the BSE Sensex close the near the day's high at 17,228, up 245 points or 1.44%, while the S&P CNX Nifty rose 81 points or 1.60% to 5,148.
Second-line stocks also showed significant gains and the market breadth on the BSE was extremely positive, with 1862 gainers versus 954 decliners. Sector-wise, high-beta realty, consumer durable and metal stocks led the rally.
Bharti Airtel, DLF, Tata Motors, Hindalco Industries, Reliance Industries and Jaiprakash Associates were amongst the top gainers. On the flip side, SBI( down 0.78%), Maruti Suzuki (down 0.45%) and Hero Honda Motors (down 0.14%) ended in negative territory.
State-run oil marketing companies advanced on reports the petroleum ministry has sought oil bonds worth over Rs.20,000 crore to help oil companies make up their under-recoveries on LPG and kerosene sales. BPCL advanced 2.17%, HPCL jumped over 4% and IOC edged up 0.87%.
Private sector lender ICICI Bank rose 1.26% after it joined the home-loan rate war. 3i Infotech rallied 4.28% on reports ICICI group is selling its entire stake in the company to PE firms. Larsen & Toubro gained 1.12% after its construction division bagged a Rs.844-crore contract from Nuclear Power Corporation.
Media stocks witnessed good buying. NDTV rose over 3% after it sold a 76% indirect stake in NDTV Imagine to Turner Asia for $117 million. Balaji Telefilm surged up 7%, TV18 added 3.66%, IBN18 Broadcast advanced 2.83% and Zee Entertainment gained 1.13%.
