Sensex surges 400 points powered by banking, energy stocks

The Sensex was up 350 points at 38,241while Nifty rose to 11,475. The BSE midcap index was up 0.75%. Among the Sensex stocks, RIL, Vedanta, NTPC, SBI, Asian Paints and Bajaj Finance were up between 1.5% and 2.5%.

Indian shares rose on Tuesday led by gains in banking and energy stocks tracking broader Asian markets after two sessions of losses.

People look at a screen displaying the Sensex results on the facade of the Bombay Stock Exchange . (REUTERS)

The Sensex was up 350 points at 38,241while Nifty rose to 11,475. The BSE midcap index was up 0.75%. Among the Sensex stocks, RIL, Vedanta, NTPC, SBI, Asian Paints and Bajaj Finance were up between 1.5% and 2.5%.

Among the laggards, ITC fell 0.85%, TCS 0.80% and Infosys 1.35%.

Also supporting the equities was a stronger rupee, which rose as much as 0.25 percent to 68.77 against the dollar. However, the outlook for global economy remained murky as investors weighed the probability of whether the US economy is in danger of slipping into recession.

“Domestic markets are well placed, sentiments are still positive, the selloff was mainly because of fears of global slowdown and some correction after last week’s rally,” said Neeraj Dewan, director, Quantum Securities.