The Indian equity benchmarks moved sharply higher amid heightened volatility on Tuesday led by gains in banking and information technology heavyweights such as Infosys, Tata Consultancy Services, HDFC Bank, ICICI Bank and Kotak Mahindra Bank. The Sensex climbed as much as 671 points to hit an intraday high of 51,111.94 and Nifty 50 index touched an intraday high of 15,126.85. The benchmarks opened higher but gave up gains in afternoon trading. However, late buying in private banks and IT shares helped benchmarks close near the day's highest levels.
The Sensex rose 584 points to close at 51,025 and Nifty 50 index advanced 142 points or 0.95 per cent to settle at 15,098.
"The market witnessed an attempt to break above the resistance level around the Nifty 50 Index level of 15,100. The expected levels of the market are likely to be in the range of 14,900 and 15,100, and it's going to crucial for the short-term market scenario to sustain above the 14,900 Nifty50 index level. While it is subject to further price action evolution, It is prudent to wait for a decisive breakout above 15,100 and technical factors to improve before going long in the market. The traders are advised to refrain from building a new buying position until further improvement," Ashis Biswas, head of technical research at CapitalVia Global Research said.
On the primary market front, the initial public offer of Easy Trip Planners has been subscribed 2.65 times so far on the second day of bidding, with the retail investor segment fully subscribed.
Five of 11 sector gauges compiled by the National Stock Exchange ended higher led by the Nifty Private Financial Services index's over 2 per cent gain. Nifty Private Bank, IT and Bank indexes also rose between 1-1.8 per cent.
On the other hand, Metal, media, PSU bank, realty shares witnessed selling pressure.
Broader markets underperformed their larger peers as Nifty Midcap 100 index fell 0.5 per cent and Nifty Smallcap 100 index declined 1 per cent.
SBI Life was the top Nifty gainer, the stock rose 5 per cent to close at Rs 970. Kotak Mahindra Bank, HDFC Bank, Tech Mahindra, HDFC, ICICI Bank, HDFC Life, TCS, Bajaj Finance, Grasim Industries, Asian Paints and HCL Technologies also rose between 1.6-3 per cent.
On the flipside, BPCL, Tata Steel, GAIL India, Indian Oil, Power Grid, Tata Motors, JSW Steel, NTPC, Cipla, ONGC, Hindalco and Dr Reddy's Labs were among the losers.
The overall market breadth was negative as 1,735 shares ended lower while 1,259 closed higher on the BSE.