Equity indices gain over 2.5% led by banking, tech stocks

‘Continued support from foreign investors aided rise’

Benchmark equity indices on Tuesday made strong gains of more than 2.5% backed by buying in financial, banking and technology stocks.

The S&P BSE Sensex surged 1,564.45 points, or 2.7%, to 59,537.07. Stocks that gained the most in the Sensex pack includ Bajaj Finserv (5.47%), Bajaj Finance (4.86%), IndusInd Bank (4.38%), Tech Mahindra (3.96%), ICICI Bank (3.72%) and Kotak Bank (3.46%). The NSE Nifty-50 index too rose 446.40 points, or 2.58%, to 17,759.30 points.

“Markets have completely engulfed the recent decline with a decisive up move; however sustainability would be critical for a further uptick,” said Ajit Mishra, vice president, Research, Religare Broking.

“While global cues are still mixed, upcoming domestic data like core sector and auto sales numbers will be on the radar for cues,” he added.

Vinod Nair, head of Research, Geojit Financial Services, said, “The rebound indicates the domestic economy’s resilience in comparison to its global peers. Although the markets are currently at premium valuations, continued support from foreign investors aided domestic stocks to inch higher”.

“Sectors in [sync] with the progress of the domestic economy should be able to do well compared to the rest,” he added.