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Closing bell: Sensex gains 454 points, Nifty above 21,900
Stock Market today: Closing bell: Sensex rises 493 points, Nifty above 21,900
Indian shares shrugged off a dull start to move higher on Tuesday, led by information technology stocks on improving prospects of a soft landing in the U.S. economy, although a drop in energy stocks kept a lid on gains.
The NSE Nifty 50 index added 0.38% at 21,853.25 as of 10:21 a.m. IST, while the S&P BSE Sensex edged up 0.38% at 72,003.52.
"With two key events (the Federal Reserve policy decision and India's budget) behind, the markets are consolidating near record high levels," said Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
Earnings-led, stock-specific action is likely to influence the near-term trajectory of domestic equities, Khemka said.
The IT index rose 2.2% after strong U.S. services sector growth data provided further evidence of strength in the world's largest economy, a key geography for India's software companies.
Meanwhile, data showed foreign portfolio investments added IT stocks, on a net basis, while they offloaded shares in most other major sectors.
Tata Consultancy Services, HCLTech, Wipro gained between 2.5% and 4% and were among the top four Nifty 50 gainers.
Energy stocks eased 0.3%, after gaining 5.72% in the last four sessions.
Among individual stocks, Paytm rose about 4%, rebounding off a record low. It has slumped about 42% in three days after a regulatory crackdown on its payments bank. Reuters reported that India's federal anti-fraud agency was investigating foreign exchange rules violations.
Truck maker Ashok Leyland gained 2% after strong demand helped it report a higher-than-expected quarterly profit.
