The Sensex has ended (provisional) at 19,581 - up 154 points. Nifty ended up 45 points at 5,950.
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(Updated at 1425 hrs)
The market sentiment was boosted by US policy makers reaching an agreement late on Monday, 31 December 2012, to avert the imminent fiscal cliff of wide-reaching tax hikes and deep spending cuts in the world's biggest economy. The Sensex, after opening at 19,513 touched a high of 19,623. The 30-share Sensex is now up 159 points at 19,585 and the 50-share Nifty up 46 points at 5,951.
The Reserve Bank of India (RBI) after trading hours on Monday said that India's current account deficit (CAD) worsened to $22.3 billion in Q2 September 2012 from of $16.4 billion in Q1 June 2012. CAD in Q2 September 2012 stood at 5.4% of GDP, higher than 4.2% of GDP in Q2 September 2011.
Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for December 2012 tomorrow, 2 January 2013. Investor focus is on the guidance provided by the management for the year ending March 2013 to gauge the earnings outlook. Infosys will be announcing results on January 11, 2013.
Markets in Asia remained closed as will the US markets today. Wall Street on Monday rallied to yearly gains on expectations that US leaders will reach budget deal. The agreement would raise taxes on wealthy Americans, extend unemployment benefits, and delay across-the-board spending cuts but would let a 2% payroll-tax cut lapse and do nothing to address the US borrowing limit.
" The pychological mark of 6000 has been a stern resistance for markets. On closing basis 5949 if held onto for next couple of sessions, it would pave way for a rally towards 6181," said Ranak Merchant, Technical Analyst - Strategies, Sushil Financial Services.
All the sectoral indices traded in the positive zone. BSE realty index gained 2.3% to 2160. Metal, bankex and capital goods added 1-2% each.
Jindal Steel added 2.5% to Rs 459. Hindalco, Tata Steel and Sterpite surged 2-2.5% each.BHEL was up 2%, followed by banking names such as SBI and ICICI Bank. HUL, Coal India, Bharti Airtel were some of the other key gainers.
However, NTPC slipped 0.7% to Rs 155. ONGC and Bajaj Auto showed some weakness and were trading flat.
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