The benchmark Sensex topped the psychological 20,000 mark intra-day and the markets extended gains on Tuesday to end at new two-year closing highs on the back of better-than-expected third quarter earnings so far.
The BSE benchmark surged to a high of 20,037 and finally ended up 80 points at 19,987. NSE Nifty ended at 6,057 - up 33 points. On January 7, 2011, the Sensex had ended at 19691.81 and on January 5, 2011 the Nifty had ended at 6,079.80.
"Nifty has found some resistance near 6050 levels, the same was honoured even in yesterday's rally. 6050 needs to be watched on closing basis for establishment of the next breakout that may take us to 6181," said Ranak Merchant, Technical Analyst - Strategies, Sushil Financial Services.
Most Asian markets ended lower Tuesday as worries about the U.S. debt ceiling impasse led investors to take profit after a strong recent run. Mainland Chinese stocks extended their rally on more buying amid hopes for greater foreign participation in the domestic markets, while Japanese shares advanced after the yen dropped to multiyear lows Monday. Japan's Nikkei added 0.7% at 10,879. Straits Times, Kospi and Taiwan Weighted ended in the red.
Foreign institutional investors remained buyers of Indian stocks on Monday. FIIs bought shares worth a net Rs 611.10 crore on 14 January 2013, as per provisional data from the stock exchanges.
The broader markets were mixed. The BSE mid-cap index added 0.3% to 7,262 while small-cap index fell marginally to 7,504.
BSE realty index surged 1% to 2,276 on hopes that easing inflation would help the central bank to cut rates at its policy meet during the end of the month.
FMCG, bankex, consumer durables and oil & gas indices added 0.5-0.7% each. On the other hand, BSE metal index showed some weakness, owing to global pressure. The index was down marginally at 11,042.
Telecom shares gained on reports that mobile service providers wil hike voice call tariffs. Bharti Airtel was the top gainer among Sensex stocks - up 5% at Rs 345. Idea ended up 8.3% at Rs 122 and Reliance Comm ended up 2.7% at Rs 86.
Software services exporter Tata Consultancy Service gained the most in more than eight months in Mumbai trading after posting better-than-expected earnings and prompting a raft of analyst upgrades. HSBC upgraded TCS to "overweight" from "neutral," and "modestly" increased its profit outlook for the year ending March 2014 by 2%age points, citing improving margins and an expected rise in demand. CLSA described the quarterly earnings as "picture perfect" and upgraded the stock to "outperform" from "sell." Shares of TCS erased gains and ended flat at Rs 1,334.
Index heavyweight and cigarette maker ITC added 2% at Rs 283, rebounding from its earlier losses.
ICICI Bank, Tata Power and Hindalco advanced in trades. Bajaj Auto was up 1% at Rs 2,115 ahead of its results tomorrow.
Metal shares declined, mirroring the fall in the London Metal Exchange. Sterlite slipped 1.3% at Rs 117. Jindal Steel also dropped, as did Coal India, Dr Reddy's and Sun Pharma.
Private lender Axis Bank today reported a 22% increase in net profit at Rs 1,347 crore for the third quarter ended December 2012. It was Rs 1,102 crore in the same period a year ago. The total income rose 19% to Rs 8,580 crore as against Rs 7,207 crore in December 2011. Shares of Axis Bank rallied 2.6% at Rs 1,422.
Market heavyweight Reliance dipped 0.1% at Rs 846. The company announces its Q3 results on Friday. The same day would see companies such as Wipro, HDFC Bank and ITC unveil their quarterly numbers.
HCL Infosystems surged 5% after the company said its board of directors approved the business restructuring option recommended by the Finance Committee.
BSE market breadth was marginally negative. Out of 3,031 stocks traded, 1,127 shares declined while 1,093 shares advanced in trades.