The Indian equity benchmarks staged a gap up opening on Tuesday led by gains in ICICI Bank, Reliance Industries, HDFC, Tata Consultancy Services, Bajaj Finance and Larsen & Toubro amid positive cues from other Asian markets. Asian shares were trading higher with Japan's Nikkei up 0.78 per cent, Straits Times up 0.58 per cent, Hang Seng up nearly 2 per cent and Taiwan Weighted up 0.75 per cent.
Overnight, a gauge of global stocks closed at a record on Monday and U.S. Treasury yields held above five-month lows touched last week as investors looked for signs on whether the Delta variant of the COVID-19 coronavirus could hamper economic growth.
Last week, a bond market rally pushed the yield of the benchmark 10-year U.S. Treasury note to a five-month low of 1.25 per cent as investors worried that climbing cases of the variant could slow the economic recovery. The yield had risen to as high as 1.78 per cent in March as rising vaccination rates fed expectations for growth.
Back home, buying was visible across sectors as all the 11 sector gauges compiled by the National Stock Exchange were trading higher led by the Nifty Realty index's per cent gain. Nifty PSU Bank, Private Bank, Metal, Financial Services, Auto and Bank indices also rose between 0.6-0.8 per cent.
Mid- and small-cap shares were also witnessing buying interest as Nifty Midcap 100 index rose 0.35 per cent and Nifty Smallcap 100 index advanced 0.74 per cent.
NTPC was top Nifty gainer, the stock rose nearly 3 per cent to Rs 121. ICICI Bank, HDFC, Hindalco, Sun Pharma, SBI Life, Tata Steel, JSW Steel and Grasim Industries were also among the gainers.
On the flipside, Adani Ports, HCL Technologies, Tech Mahindra, Infosys, Tata Consumer Products, Maruti Suzuki, Hindustan Unilever, Wipro, IndusInd Bank and Bajaj Finserv were among the losers.
The overall market breadth positive as 1,888 shares were advancing while 810 were declining on the BSE.