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The S&P BSE Midcap and S&P BSE Smallcap indices gained 0.4% and 1%, respectively
Snapping three-session long losing spree, the benchmark indices settled higher on Tuesday as recent decliners such as IT stocks recovered, but overall sentiment was cautious ahead of the start of the earnings season and as globally geopolitical tensions grew in Middle East and the Korean Peninsula.
The S&P BSE Sensex ended at 29,788, up 213 points, while the broader Nifty50 closed at 9,237, up 55 points.
In the broader market, the S&P BSE Midcap and S&P BSE Smallcap indices gained 0.4% and 1%, respectively.
The breadth, indicating the overall health of the market, was positive. On BSE, 1,719 shares rose and 1,154 shares fell. A total of 148 shares were unchanged.
"Market rebounded despite the weaknesses in global market, banks lead the rally while a recovery in IT stocks supported the sentiment. Expectations of timely implementation of GST, investment in infrastructure, strong rupee and a revival in consumption could give leeway to investors ahead of the kick-start of the earnings season," said Vinod Nair, Head of Research, Geojit Financial Services.
Sectors and stocks
Nifty PSU Bank index (up 2%) led the sectoral chart, thanks to gains in Syndicate Bank (up 4.5%), PNB (up 4%) and Oriental Bank (up 3%). Nifty Bank added nearly 1%. The index has gained about 18.4% this year as of Monday's close.
Infosys, the country's second-largest software services company, is due to report results on Thursday, unofficially kicking off the reporting season for major companies. The stock, which had shed nearly 7% this month as of Monday's close, gained 1.5% today.
The Nifty IT index ended 0.6% higher, recovering from a loss of 1.4% in the previous session.
SpiceJet rose as much as 2.9% to Rs 100 in intraday trade after Sebi settled a case against chairman Ajay Singh over whether he violated disclosure rules when he bought shares from promoters in February 2015. The stock settled at Rs 97.
Meanwhile, Supreme Court set aside an order by the Appellate Tribunal For Electricity allowing compensatory tariff to Tata Power and Adani Power, sending their shares down 2% and 16%, respectively. In intraday trade, Tata Power shed over 6% to Rs 81.
Meanwhile, Adani Ports tanked 5% to Rs 334. The stock was the top loser on Sensex.
March inflation seen edging up
The consumer price index (CPI)-based inflation is seen climbing to within touching distance of the Reserve Bank of India's 4% medium-term target in March, driven by higher food costs, a Reuters poll found, backing policymakers' decision last week to move to a defacto tightening bias.
Having sunk to its lowest level for at least five years in January, consumer price inflation is expected to have risen to 3.98% last month from February's 3.65%, according to the median forecast of 30 economists.
The March inflation rate is due to be released tomorrow.
Global markets
European markets opened slightly lower on Tuesday as rising geopolitical risks in the Middle East and Korean Peninsula added to existing uncertainty over the upcoming French election.
The pan-European Euro Stoxx 600, Germany's DAX and France's CAC 40 were down 0.1% each, while Britain's FTSE 100 bucked the trend to gain 0.5%.
Among Asian markets, MSCI's broadest index of Asia-Pacific shares outside Japan dropped 0.3%. Tokyo's Nikkei closed 0.3% lower, dragged down by a stronger yen. Chinese shares lost 0.4%, while Hong Kong stocks slumped 0.9%.
South Korean shares and Taiwan were also lower.
