The Indian equity benchmarks edged higher on Tuesday, December 28, tracking upbeat global cues in the absence of domestic triggers. The Sensex rallied 477.24 points or 0.83 per cent higher at 57,897.48, while the Nifty 50 index surged 147 points or 0.86 to settle at 17,233.25. The benchmark indices closed at over one-week high levels led by energy, IT, pharma stocks along with gains in global stocks.
Asian Paints, Sun Pharma, UltraTech Cement, Mahindra & Mahindra (M&M) were among the top gainers. On the other hand, IndusInd Bank, Power Grid Corporation of India were the top drags.
Almost all sectoral indices ended in the positive territory. Bank Nifty was up 0.36 per cent, and Nifty Auto index jumped 1.34 per cent. Mid- and small-cap shares traded on a positive note as Nifty Midcap 100 index was up 1.18 per cent and Nifty Smallcap 100 index rose 1.55 per cent.
On the stock-specific front, Supriya Lifescience shares made a strong debut today amid positive market sentiment. Shares of the active pharmaceuticals ingredients (API) manufacturer opened on the BSE at Rs 425 apiece - a premium of 55.1 per cent or Rs 151 higher than the issue price of Rs 274.
"The domestic market is drawing strength from the upsurge in global equity indices, which have been steadily moving up in recent sessions after correcting sharply on concerns related to the Omicron variant, likely interest rate hikes in key developed economies going ahead, and the rising inflation world wide.
The trading setup suggests a quick intraday correction if the Nifty trades below 17180, and below the same, the correction wave could move up to 17100-17160 levels,'' said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.
Meanwhile, India's benchmark 10-year bond yield rose to its highest level since April last year as investors grew cautious of the heavy government debt pipeline, rise in global oil prices, and lack of direct support from the Reserve Bank of India.
Traders are expecting the central bank to come in with some form of support to help the market ahead of the debt sale on Friday.
In global markets, shares in Europe and Asia inched up, on Tuesday, helped by another record-setting day on Wall Street. Globally, oil prices extended gains on Tuesday with prices trading near the previous day's one-month high on hopes that the Omicron coronavirus variant will have a limited impact on fuel demand.
In the currency market, the rupee continued its gain for the ninth trading session in a row, rising 34 paise to close at 74.66 (provisional) against the US dollar, tracking positive domestic equities amid a rising appetite for high-risk assets.
Back home, the central government today cleared two more vaccines - Corbevax and Covovax and one anti-viral drug - Molnupiravir, to boost the fight against the COVID-19 pandemic.
Also, the Delhi government announced a ''Level 1'' or ''Yellow Alert'' as cases continue to rise in the national capital amid the Omicron strain threat.
As part of the new guidelines, private offices in Delhi will operate at 50 per cent, malls and shops will open on an odd-even basis, and night curfew will be imposed between 10 pm and 5 am daily. The restrictions follow Delhi's biggest single-day spike in infections in six months yesterday, with 331 new cases.