Benchmark indices were trading in the green during the afternoon on Tuesday, led by auto after the BSE Sensex recorded fresh highs.
Benchmarks, after opening on a positive note amid firm global cues, extended gains, as declining Covid-19 cases and vaccination ramp up boosted investor sentiments. India vaccinated over 86 lakh people in a day for the first time on Monday.
However, indices lost momentum a bit during the afternoon but still held on to most of their gains.
At 1 pm, the BSE Sensex which recorded a fresh all-time high of 53,057.11 in the morning,, was ruling at 52,864.30, up 289.84 points or 0.55 per cent. It hit an intra-day low of 52,800.82.
The Nifty 50 was up 105.55 points at 15,852.05,. It hit an intra-day high of 15,895.75 and a low of 15,812.45.
Maruti, UPL, Adani Ports, Shree Cements and Tata Motors were the top gainers on the Nifty 50 while Nestle India, Bajaj Finance, Asian Paints, Cipla and Hindustan Unilever were the top laggards.
Likhita Chepa, Senior Research Analyst, CapitalVia Global Research Ltd said, traders were encouraged by a Ficci poll that found lifting of lockdown restrictions due to a drop in Covid-19 cases saw an immediate signs of improved economic activity and enterprises anticipate better results in the next 6 to 12 months.
“Investors were back to oil and other sectors projected to outperform as the economy recovers from the pandemic
Auto, PSU Bank in focus
On the sectoral front, the rally was led by auto and PSU Bank stocks. Nifty Pharma which remained under pressure in the morning, recovered while FMCG stocks slipped. All indices except Nifty FMCG were in the green.
Nifty Auto was up 1.80 per cent while Nifty PSU Bank was up 1.33 per cen. tNifty Pharma was up 0.13 per cent.
Meanwhile, Nifty FMCG was down 0.05 per cent.
All broader indices were in the green as midcap and smallcap stocks outperformed the benchmarks.
The Nifty Midcap 50 was up 0.69 per cent while the Nifty Smallcap 50 was up 1.23 per cent. The S&P BSE Midcap was up 0.88 per cent while the S&P BSE Smallcap was up 1.30 per cent. The volatility index softened 3.02 per cent to 14.61.