Equity benchmark Sensex rebounded 497 points on Tuesday after a two-day selloff, tracking gains in index majors Reliance Industries, ICICI Bank and HDFC Bank amid a positive trend in other Asian markets.
The 30-share BSE index jumped 497 points or 0.89 per cent to end at 56,319.01. Similarly, the NSE Nifty advanced 156.65 points or 0.94 per cent to 16,770.85.
HCL Tech was the top gainer in the Sensex pack, rising around 4 per cent, followed by Wipro, Tata Steel, Titan, Tech Mahindra and Sun Pharma.
On the other hand, PowerGird, Axis Bank, Bajaj Finance and SBI were among the losers.
Indian benchmarks were positive tracking gains in other Asian markets, said Gaurav Garg, Head of Research, Capitalvia Global Research.
"Traders took encouragement as a Commerce Ministry official said Indian exports showed a turnaround after December last year and are still strong," he added.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with gains.
Stock exchanges in Europe were also trading on a positive note in mid-session deals.
Meanwhile, international oil benchmark Brent crude slipped 0.07 per cent to $71.47 per barrel.
Gaurav Ratnaparkhi, Head of Technical Research, Sharekhan by BNP Paribas, said The Nifty had reached the support zone of 40 WEMA & the weekly lower Bollinger Band after the sharp decline on December 20. From these support parameters, the index witnessed a bounce on December 21. With this bounce, the index attempted to fill up a gap that was created on the daily chart recently.
The benchmark index partially filled up the gap of 16840 – 16966 & faced resistance near the upper end of the gap. The overall structure shows that the Nifty is set for a short term consolidation in the range of 16400-17000. Any dip towards the lower end of the range will be a staggered buying opportunity for positional traders, according to a report published in Moneycontrol.
Vinod Nair, Head Of Research at Geojit Financial Service, was quoted by The Economic Times as saying, “Indian market is attempting to recover from yesterday’s heavy selloff, domestic indices staged a gap-up opening on bargain hunting supported by positive sentiments across global markets. Although concerns surrounding the impact of Omicron & FII selling still lingers, investors are trading cautiously and are optimistic. Gains in IT, commodities and metal stocks lifted the indices higher.”