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By 1300, Sensex gained by 194 points at 19,072, and the Nifty up 58 points or 1.02% at 5,757 levels.
According to Ranak Merchant, Technical Analyst (Strategies) at Sushil Finance, “The last week's fall marked the 5th straight week of declines for Benchmark Indices that managed to find support near their respective 200 Day EMA. The last 3 sessions have seen the Nifty forming a base around 5650 levels (200 Day EMA). If 5650-5623 zone is sustained in next two days a technical bounce towards 5835-5888 in on the cards.”
On the global front, Asian shares rebounded sharply on Tuesday, reclaiming most of the previous day's steep losses triggered by slumping Chinese stocks, as a globally accommodative monetary stance helped revive risk appetite.
European markets are also seen climbing, with financial spread betters predicting London's FTSE 100, Paris's CAC-40 and Frankfurt's DAX would open up as much as 0.6%. A nearly flat showing in US stock futures pointed to a subdued Wall Street start.
Back home, BSE Auto and Metal indices have surged by almost 2% followed by counters like Banks, IT, Realty, Oil & Gas, Capital Goods, TEck and Healthcare, all gaining by 1% each. Apart from FMCG and Consumer Durable, all the major BSE sectoral indices are trading in green zone.
The main gainers on the Sensex at this hour include Tata Motors, Maruti Suzuki, ICICI Bank, Wipro, Hindalco, JSPL, Sterlite and RIL, all spurting between 2-4%.
On the losing side, Bajaj Auto, NTPC, ITC and Bharti Airtel have declined between 0.5-1%.
Shares of sugar manufacturer are in demand on the bourses on reports that the government may consider easing curbs on sugar sector on expectation of higher production.
“India, the world' biggest sugar consumer, could consider easing curbs on the tightly controlled industry by next week,” the Reuters reports suggest quoting Food Minister K.V. Thomas. The minister said sugar production could touch 25 million tonnes in next financial year 2013-14, higher than local demand of around 22 million tones.
Among the individual stocks, Balarmpur Chini Mills has rallied 5.4% to Rs 48.90, followed by Shree Renuka Sugars (4.4% at Rs 24.95) and Bajaj Hindustan (3.2% at Rs 20.95) on BSE.
Meanwhile, BSE Midcap index has surged by 1.03% whereas BSE Smallcap index is up by 0.44%.
The market breadth in BSE remains positive with 1,430 shares advancing and 1,113 shares declining.
