After opening on a robust note, Indian equities continued to trade firm in the late morning deals on Tuesday tracking a mostly positive trend from Asian peers coupled with fresh foreign capital inflows. The hopes of a rate cut by the Reserve Bank of India in its upcoming policy meet scheduled on September 29, too bolstered the mood of the street.
At 11:16 hours, the 30-share barometer index of Bombay Stock Exchange, Sensex was at 26269.15, up by 76.17 points or 0.29 per cent while the NSE Nifty was at 7993.3, up by 16.2 points or 0.2 per cent.
The market sentiment was buoyed amid speculation that the RBI may cut interest rates at least by 25 basis points on September 29 amidst cooling inflation and the Fed status quo.
Shares of IT, Teck and pharma sectors led the rally.
The top gainers of the BSE Sensex pack were Infosys Ltd. (Rs. 1133.50,+2.61%), Wipro Ltd. (Rs. 601.00,+1.47%), ITC Ltd. (Rs. 318.25,+1.26%), Bharat Heavy Electricals Ltd. (Rs. 209.50,+1.01%), Dr. Reddy's Laboratories Ltd. (Rs. 3993.70,+0.92%), among others.
The stocks of IT major Infosys up over 2 per cent after it has secured a three-year contract to develop and maintain all global web-based properties of TOMS Shoes.
Major show spoilers were Hindalco Industries Ltd. (Rs. 75.80,-2.82%), Bharti Airtel Ltd. (Rs. 344.95,-2.17%), Reliance Industries Ltd. (Rs. 866.50,-1.28%), NTPC Ltd. (Rs. 125.30,-1.03%), Coal India Ltd. (Rs. 339.60,-0.80%), among others.
The market breadth, indicating the overall strength of the market, was positive. On BSE, out of the total 2150 shares traded, 1348 advanced while 721 shares declined and 81 remained unchanged.
On the global front, most of the Asian markets were trading in the green following a rebound in US equities after top officials from the Fed stressed that the American economy is in strong shape to withstand rate tightening still very likely this year, as threat from abroad proves temporary.