Energy stocks fuel rally, Nifty crosses 10,600

The benchmark indices closed higher for the second straight day on Tuesday, propelled by a burst of buying in energy stocks, even as crude oil prices soared to over three-year highs. Reliance Industries was the top gainer on the Sensex, surging 3.7 per cent, while the BSE Energy index outperformed other sectoral indices by a wide margin. The Sensex rallied 165.87 points to settle at 34,616.64 and the NSE Nifty ended 29.65 points higher at 10,614.35.

Benchmark indices closed higher for the second straight session on Tuesday, propelled by buying in energy stocks even as crude oil prices soared to over three-year highs.

Reliance Industries was the top gainer in the Sensex pack, surging 3.70 per cent, while the BSE Energy index outperformed all other sectoral indices by a wide margin. The BSE Sensex rallied 165.87 points to settle at 34,616.64 and the NSE Nifty ended 29.65 points higher at 10,614.35.

An appreciating rupee, unabated buying by domestic institutional investors (DIIs), and encouraging earnings by blue-chips contributed to the uptrend, brokers said.

Overseas, Asian markets closed mostly higher even as oil prices crossed $75 a barrel, the highest level since November 2014. It was pushed up by expectations of renewed US sanctions against Iran and Organisation of Petroleum Exporting Countries continuing to crimp supplies.

The BSE 30-share Sensex took off on a positive note at 34,491.38 and advanced to the day’s high of 34,706.71 before ending at 34,616.64, up 165.87 points, or 0.48 per cent.

The gainers included Yes Bank, M&M, Adani Ports, ICICI Bank, L&T, HDFC, Bajaj Auto, Dr Reddy’s, and ONGC.

The NSE Nifty, after shuttling between 10,636.80 and 10,569, finally settled 29.65 points, or 0.28 per cent higher at 10,614.35.

However, the gains were capped by selling pressure in metals, IT, power, consumer durables, and public sector undertakings’ stocks.

Meanwhile, DIIs bought shares worth a net ~3.87 billion, while foreign portfolio investors sold shares worth ~2.59 billion on Monday, provisional data released by the stock exchanges showed.

“Market extended gains backed by index heavyweights while correction in metals and IT were due to ease in sanctions by the US and tightening of H1-B visa procedure. Investors are likely to be cautious amid surging oil prices but any green shoots from corporate results and stability in yield will determine the market direction,” said Vinod Nair, head of research, Geojit Financial Services.