A set of strong corporate earnings numbers gave the market enough comfort as the Sensex soared by over 258 points on Tuesday to end at 27,376, a 2-month high, with covering of short positions ahead of derivatives expiry making the job easier. The big domestic trigger coming up next is Union budget, which is slated for February 1.
Encouraging results from blue-chips led by HDFC Bank, Tata Communications and HCl Tech got investors going, with mood turning positive after a higher opening in Europe. The 30-share pack resumed higher and moved in a range of 27,393.35 and 27,140.85 before ending at 27,375.58, a sharp gain of 258.24 points, or 0.95 per cent. This is its highest closing since November 10, 2016, when it closed at 27,517.68.
It had gained 82.84 points in the previous session. The NSE 50-share Nifty also recaptured the 8,400-mark by rising 84.30 points, or 1 per cent, to end at 8,475.80. “The market extended gains with increasing focus on the upcoming budget which induced participants for short-covering ahead of the expiry tomorrow (Thursday). Positive quarter results have also influenced the investors to participate in the pre-budget rally,” said Vinod Nair, Head of Research, Geojit BNP Paribas Financial Services. The rupee too closed higher against the dollar.