Indices end nearly 2% up led by RIL, financials

The benchmark shares indices ended almost 2% higher on Tuesday, snapping a four day losing streak, on the back of robust global cues, with Reliance Industries, financials and capital goods leading the gains.

The Sensex provisionally closed at 17,734 up 288 points or 1.7%, while the Nifty ended at 5,379 up 98 points or 1.9%. 

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Updated at 1430 hrs

Markets continue to hold on to their robust gains with the Sensex and the Nifty inching towards 17,800 mark and 5,400 levels, respectively. The gains are led by consistent buying among index heavyweights, financial and auto shares. Firm opening of the European markets also cheered the sentiments among local investors. By 1430, the Sensex was up 311 points at 17,757 and the Nifty gained 103 points to 5,385.

On the global front, Asian shares ended positive on Tuesday as markets waited for a second liquidity injection from the European Central Bank to gau12ge risk appetite that has been somewhat dented by worries over high oil prices. Nikkei, Strait Times, Hang Seng, Taiwan Weighed, Shanghai Composite and Kospi surged between 0.1-1%.

The euro traded just below 12-week highs, stocks were firmer and safe-haven German bonds edged lower on Tuesday as the European Central Bank's upcoming liquidity injection supported prices and eclipsed concerns over Greece and the global economic outlook. CAC-40, DAX and FTSE-100 have gained between 0.3-1%.

Back home, Index heavyweight Reliance Industries maintain the steady movement and is up by nearly 2%.

Banking and financial shares like SBI, ICICI Bank, HDFC and HDFC Bank have edged higher and have surged between 2-6% on hopes of rate cut by the central bank as concerns over rising inflation eased.

From the Capital Goods space, BHEL is the top Sensex gainer, up by over 6%.

Metal stocks like Hindalco, Sterlite, Tata Steel, Coal India and Jindal Steel have gained between 2-5%.

Among Auto segment, Tata Motors has jumped by nearly 5% ahead of the February vehicle sales numbers, which the company is scheduled to declare tomorrow. Hero MotoCorp, M&M, Bajaj Auto and Maruti Suzuki have gained between 1-3%.

Realty stocks have also rallied on expectations that the central bank will start cutting interest rates in the coming months to prop up slowing economy. DLF has zoomed by over 4%.

The broader markets continue to outperform the benchmarks indices. The BSE Midcap and Smallcap indices have zoomed between 2-3%.

Shares of state-owned companies such as HMT, ITI and Scooters India have rallied more than 9% each on reports that the government is likely to revert to the policy of using 25% of the disinvestment proceeds for reviving sick public sector undertakings (PSUs) and recapitalizing the profitable ones from the next fiscal.

Indiabulls Financial Services has zoomed 17% to Rs 228 on back of huge volumes.

Jaiprakash Associates has moved up 7% after the company late Monday said its shareholders and creditors have approved hiving off its cement business to a wholly-owned subsidiary, Jaypee Cement Corporation Ltd (JCCL).

The overall market breadth in BSE remains strong with 2,074 shares advancing and 710 shares declining.