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Benchmark indices continue to maintain the upbeat trend led by metal, capital goods and oil shares.
At 14:35 PM the 30-share Sensex was up 101 points at 24,789 and the 50-share Nifty was up 30 points at 7,392.
According to Navneet Daga, Derivative Analyst, KR Choksey Securities, “Well after the sharp rally on Nifty, some call OI shed is visible on 7300-7400 range, with now writing visible at 7500 zone, nifty likely to touch and surpass the levels of 7500 this expiry. Buying on dips with stop loss placed at 7200 zone is recommended.”
On the global front, Asian shares rode higher on Tuesday, supported by solid US and Chinese data, while the euro dragged its feet near a 3 1/2-month low on expectations of fresh monetary easing by the European Central Bank.
Japan's Nikkei hit a two-month high, further boosted by talk of public pension funds increasing their assets allocated to domestic shares.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2%, nearing a one-year high hit last week.
Back home, the Reserve Bank of India was spotted buying dollars via state-run banks starting around 59.16, two traders said.
The rupee was at 59.2050/2100 per dollar, off its session high of 59.12.
Foreign institutional investors (FIIs) bought shares worth a net Rs 234.49 crore on Monday, 2 June 2014, as per provisional data from the stock exchanges.
On the sectoral front, BSE Metal index has surged by nearly 4% followed by counters like Realty, Capital Goods, Oil & Gas and Consumer Durables, all gaining by over 1% each. However, BSE FMCG index has declined by nearly 1%.
Metal stocks have zoomed on the back of positive manufacturing data in China, the world's biggest consumer and producer of the metal. Coal India has zoomed 3.4% to Rs 387 on the BSE. Sesa Sterlite has risen by 2.8% to Rs 287.7.
The banking stocks are trading flat, with a positive bias, after the Reserve Bank of India left the key interest rate unchanged in its monetary policy review.
The central bank has kept the repo rate unchanged at 8% and cash reserve ratio unchanged at 4%; it has, however, reduced the statutory liquidity ratio by 50 basis points to 22.5%.
Today's bi-monthly policy review is the first after Prime Minister Narendra Modi assumed office on May 26.
ICICI Bank has weakened by 0.6% at Rs 1453, HDFC Bank has shed 0.5% at Rs 815, Axis Bank and SBI are virtually unchanged at Rs 1900 and Rs 2642 respectively.
Notable gainers are Sesa Sterlite, Coal India, Tata Steel, BHEL, Hero Moto and NTPC, all gaining between 2-6%.
On the losing side, Dr Reddy’s Labs, HUL, ITC, GAIL and Bharti Airtel have declined between 1-2%.
Sugar stocks surged on hopes that the Modi-led government would help revive the industry by encouraging ethanol blending in petrol and also hike import duty on the commodity to support local prices.
Bajaj Hindusthan, Dhampur Sugar Mills, Shree Renuka Sugar Mills and Balram Chini Mills have gained between 7-11%.
The broader markets are outperforming the benchmark indices- BSE Midcap and Smallcap indices have gained by 1% each.
