Nifty 50 hit 8,500 on opening, for the first time since November 10 led by gains in Bajaj Auto, Ultratech Cements, Idea and Tata Power while Sensex rallied over 100 points.
At 1:07 pm, the S&P BSE Sensex was trading at 27,551 up 176 points, while the broader Nifty50 was ruling at 8,540, up 64 points.
In the broader market, the BSE Midcap and BSE Smallcap indices registered an uptick of 0.4%, and 0.7%, respectively.
"Looking towards the momentum Nifty is carrying since last two trading sessions, it likely to extend its rally towards 8,520/8,570. On the flip side, Nifty has a immediate support at 8,370 levels on closing basis. For intraday, Nifty support lies at 8,420/8,370 and resistance placed at 8,440/8,460," said Nirmal Bang in a technical note.
On Tuesday, foreign portfolio investors (FPIs) bought shares worth a net Rs 93.95 crore, while Domestic institutional investors (DIIs) also bought shares worth a net Rs 533.49 crore, provisional data available with BSE showed.
Sectors and Stocks
HDFC, Tata Steel, Axis Bank, Adani Ports and ONGC were the top movers on BSE Sensex while Bharti Airtel, RILm Wipro and Infosys were the biggest laggards.
Bharti Airtel (down 2%) pared losses after it fell almost 4% in early morning trade after the company reported a 55% decline in its net profit to Rs 503.7 crore as against Rs 1,108.1 crore in the same period a year ago bogged by competitive pressures brought on by low tariffs of Reliance Jio (RJio) and disruption due to demonetisation.
Biocon gained almost 2% after it reported a 64.55% rise in its consolidated net profit to Rs 171.3 crore for the third quarter ended December 31, led by robust growth of biologics business.
Maruti Suzuki rose 0.7% while Kotal Mahindra bank gained 1.2% ahead of their Q3 earnings to be repoted later in the day.
Indian Overseas Bank gained 3.3% after its December quarter net loss narrowed to Rs 554.44 crore. Its net loss in the corresponding October-December quarter of 2015-16 fiscal was Rs 1,425.06 crore.
Metal index was the top sectoral gainer, extending gains for thirst straight session led by gains in Tata Steel, NALCO, Vedanta, Hindalco and JSW Steel.
Private sector banks gained in todays trade with Kotak Mahindra Bank, Axis Bank, Yes Bank and HDFC Bank up between 0.9-1.5%.
The Nifty rollovers for the January series so far stand at 55.48%, compared to 55.77% on same day of the previous expiry, which is higher than its three-month average of 50.39% and its six months average of 54.18%.
The market-wide January expiry rollover came in at 60.26% by Tuesday's trade as compared to 64.87% on same day of the previous expiry. These rollovers are higher than its three-month average of 59.71% and six months average of 60.17%.
Meanwhile, Bank Nifty rollovers came in at 43.47%, compared to 46.03% on same day of previous expiry. These are higher than its three-month average of 42% and lower than its six-month average of 45.2%.
Asian stocks are set to climb to fresh three-month highs on Wednesday following a stronger Wall Street as investors welcomed U.S. President Donald Trump's eagerness to deliver on his campaign promises.
Trump's shift back to growth initiatives including promising corporate tax breaks to fuel investment at home after focusing on protectionism in the first few days snapped the US dollar's losing streak and pushed Treasury yields higher.
In Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.16%. Early Asian markets
such as Japan and Australia led the region higher. The Nikkei225 was up over 1% in early trade while Hang Seng jumped 0.5% and the Kospi 0.05%.
Wall Street investors were back in rally mode on Tuesday, pushing the S&P 500 and Nasdaq to new records and lifting the dollar against the euro on renewed optimism about US President Donald Trump's policies. The Dow rose 0.6% to 19,912, the S&P500 0.7% to 2,280 and the Nasdaq 0.8% to 5,600.