Markets remained volatile but traded higher on Tuesday as the Reserve Bank of India's (RBI) decision to transfer Rs 1.76 lakh crore to the government's coffer lifted banking, NBFCs and automobile stocks. That apart, possible resumption in trade talks between the United States and China also boosted investors' sentiment. The gains were, however, capped by losses in the information technology stocks which dipped on a weaker rupee.
The benchmark S&P BSE Sensex settled with gains of 147 points, or 0.39 per cent, at 37,641 level with Tata Motors, Tata Steel, YES Bank, and NTPC being the top gainers at the 30-share index. Bharti Airtel, Tech Mahindra, Infosys, and TCS, however, were the top laggards. On the other hand, the broader Nifty50 closed at 11,105 mark, up 48 points or 0.43 per cent.
Sectorally, public sector banks, NBFCs, automobile, and metal stocks gained the most. Nifty PSU Bank index ended 2.51 per cent higher, followed by Nifty Metal index, up 2 per cent. Nifty IT index was the top loser, closing 1.35 per cent lower.
In the broader market, S&P BSE small-cap fared better than S&P BSE mid-cap index. The former closed 202 points, or 1.63 per cent, higher at 12,589 level, while the latter settled at 13,480 levels, up 77 points or 0.53 per cent.
Shares of HDFC Asset Management Company (AMC) surged 7 per cent to hit a new lifetime high of Rs 2,396 on the BSE in Tuesday's early morning trade on strong growth outlook and overseas investors buying. The stock surpassed its previous high of Rs 2,370, recorded on July 19, in intra-day trade. The stock closed 7.55 per cent higher at Rs 2,412 apiece.
Shares of Infosys slipped 3 per cent to Rs 781 in the intra-day trade on the BSE on Tuesday after the information technology (IT) firm closed the buyback offer as it utilised almost full size of the issue approved. The stock settled 2.23 pe cent lower at Rs 785 per share.