Indian shares rose on Tuesday, snapping a seven-day losing streak on value-buying in blue-chips, as investors shrugged off worries over an anti-corruption party's win in Delhi elections and instead focussed on the upcoming Budget.
An upstart anti-establishment party crushed India's ruling Bharatiya Janata Party in an election for the Delhi Assembly on Tuesday, smashing an aura of invincibility built around Prime Minister Narendra Modi since he swept to power last year.
Traders chose to focus on reforms in the upcoming Federal Budget on February 28 when Finance Minister Arun Jaitley is widely expected to boost capital spending and offer tax breaks to an under-performing manufacturing sector.
The benchmark BSE index rose 128.23 points or 0.45 per cent to 28,355.62, while the NSE index ended higher by 39.2 points or 0.46 per cent at 8,565.55 after earlier marking their lowest levels in over three weeks.
Sensex up over 200 points after yesterday's correction; optimism from GDP projection of 7.4% in 2014-15 vs 6.9% of 2013-14.
— Rajalakshmi Nirmal (@crajalakshmic)
Among BSE sectoral indices, banking index gained the most by 1.76 per cent, followed by auto 1.75 per cent, metal 1.68 per cent and consumer durables 1.46 per cent. On the other hand, oil & gas index was down 0.94 per cent, followed by IT 0.74 per cent, TECk 0.65 per cent and healthcare 0.1 per cent.
Major Sensex gainers were Tata Motors 4.01%, ICICI Bank 3.34%, Tata Steel 2.8%, SBIN 2.65% and SSLT 2.64%, while the top five losers were TCS 2.87%, Sun Pharma 2.33%, HDFC 2.05%, Reliance 1.63% and HUL 1.17%.
Meanwhile, foreign portfolio investors sold shares worth Rs 660.30 crore yesterday, as per provisional data.
European shares fell for a second day on Tuesday, with energy stocks hurt most after crude prices slid again on concerns about oil demand in China.
Asian equities were lower across the board on Tuesday as nervousness over Greece potentially withdrawing from the euro and escalating conflict in Ukraine sapped the risk appetite, while the dollar lost steam after its payrolls-inspired rally.