Mumbai: The Sensex logged 311-point gain Tuesday as the Brent crude prices retreated after a sharp rise during the past few sessions over US-Iran tension.
Buying was seen in the beaten down steel companies such as JWS Steel and Tata Steel. Besides, index-heavyweight Reliance Industries finished among the top of the Nifty 50 companies.
A total of 35 out of 50 constituent companies of Nifty 50 advanced, while 15 ended lower. The BSE Sensex closed 311 points higher at 39,434.94 and the Nifty settled at 11,796.45 after both the indices opened lower.
Although the indices closed higher, markets have witnessed a lack of participation over the last fortnight. Investors are cautious ahead of the Union Budget, set to be tabled on July 5 and the US-China trade meet at the G20 Summit in Osaka, Japan, where the leaders will discuss trade.
“Market recovered after two days of consolidation as investors are looking for opportunities in quality heavy-weights in segments such as banks, cement and infrastructure, where long-term sentiment is positive,” said Vinod Nair, Head of Research, Geojit Financial Services.
Nair said a positive momentum was triggered as monsoon intensified and PSU banks outperformed based on the statement from FM regarding faster recovery in bad loans and recapitalization.