Bullish sentiment ruled Indian equities markets for the second day Tuesday with a benchmark index closing 188 points higher. Interest rate sensitive realty, auto and bank stocks rallied.
The markets were buoyed by hopes of some reforms during the monsoon session of parliament beginning Wednesday. Finance Minister P. Chidambaram Monday said the government will attempt to cut fiscal deficit and make changes to maintain the investment attractiveness of the country. There were also positive global cues after reports of a surge in US hiring.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,456.37 points, closed 17,601.78 points, 1.08 percent or 188.82 points up from its previous day's close at 17,412.96 points.
The Sensex touched a high of 17,641.55 points and a low of 17,417.92 points. The BSE midcap index was up 21.30 points and the small cap index was 23.58 points higher.
The BSE auto index was up 156.14 points followed by bank index up 143.49 points, and IT index up 104.33 points.
The wider 50-scrip S&P CNX Nifty of the National Stock Exchange closed 1.03 percent or 54.15 points up at 5,336.70 points.
The major Sensex gainers were Tata Motors, up 4.42 percent at Rs.238.75; Gail India, up 3.21 percent at Rs.377.40; TCS, up 2.86 percent at Rs.1,264.60; Bajaj Auto, up 2.16 percent at Rs.1,668.20; and ICICI Bank, up 2.08 percent at Rs.973.80.
The main losers were Hero MotoCorp, down 1.37 percent at Rs.1,952.50; Bharti Airtel, down 0.79 percent at Rs.293.80, Sun Pharma, down 0.28 percent at Rs.669.15; RIL, down 0.20 percent at Rs.783.70 and Dr Reddys Lab, down 0.01 percent at Rs.1,657.40.