The Indian equities rebounded strongly in late hour trade on Tuesday, with benchmark indices, Sensex and Nifty ending 1 per cent higher, as hope of policy reform and strong gains in European markets helped Indian markets recover from lower levels. The positivity in the market was injected by government initiative to convene second part of monsoon session of Parliament to pass key legislations after consulting with the political parties.
The BSE SENSEX closed at 26032.38, up by 290.82 points or by 1.13 per cent, while the NSE Nifty ended 71.7 points higher at 7880.7.
In the volatile trade, the BSE Sensex touched intraday high of 26124.83 and intraday low of 25298.42, while the NSE Nifty touched high and low of 7925.4 and 7667.25, respectively.
Pitching for passage of Goods and Services Tax Bill, Parliamentary affairs minister Venkaiah Naidu said on Tuesday that the government may convene second part of monsoon session of Parliament to pass key legislations after talking to political parties, news agency Times of India reported.
As per PTI reports, opposition party led by Congress, however, remained non-committal on its support saying it would first read the fine print.
During the day, Indian rupee, which plunged to nearly 67 against US dollar on Monday, recovered strongly in line with the equity market after Reserve Bank Governor on Monday assured that the central bank will not hesitate to use its reserves to curb the volatility in rupee.
Leading the rally on BSE Sensex pack were Vedanta Ltd. (Rs. 86.45,+7.73%), Tata Motors Ltd. (Rs. 329.20,+6.30%), Coal India Ltd. (Rs. 353.90,+5.23%), ICICI Bank Ltd. (Rs. 283.50,+5.06%), Axis Bank Ltd. (Rs. 502.40,+4.18%), among others.
Meanwhile, some selling were witnessed in Housing Development Finance Corporation Ltd. (Rs. 1145.60,-1.82%), Maruti Suzuki India Ltd. (Rs. 4199.45,-1.20%), Infosys Ltd. (Rs. 1086.50,-0.56%), Larsen & Toubro Ltd. (Rs. 1625.60,-0.48%), Tata Consultancy Services Ltd. (Rs. 2567.35,-0.46%), among others on BSE.
On the sectoral front, realty and metal indices were among top gainers, rising 6.78 per cent and 4.14 per cent, respectively.
The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2842, shares advanced were 1211 while 1524 shares declined and 107 were unchanged.
On the global front, the Asian equities ended in red with stocks in mainland China retreating over 7.5 per cent in intra-day trade amid deepening fears surrounding the health of the world"s second biggest economy, while geopolitical tensions surrounding the Korean peninsula are keeping traders edgy.