Sensex rallies over 400 pts: Nifty above 11,800

Market benchmark Sensex surged over 400 points in morning session on Tuesday led by gains in index-heavyweights Reliance Industries, HDFC twins and ITC amid firm global cues.

Reclaiming the 40,000 mark, the 30-share BSE index was trading 438.16 points or 1.10 per cent higher at 40,310.47.

Similarly, the broader NSE advanced 120.15 points, or 1.03 per cent, to 11,828.05.

In the previous session, Sensex rose 136.78 points or 0.34 per cent to settle at 39,872.31, and Nifty gained 46.05 points or 0.39 per cent to close at 11,707.90.

Meanwhile, on a net basis, foreign institutional investors sold equities worth Rs 1,200.27 crore, while domestic institutional investors purchased shares worth Rs 1,286.63 crore on Monday, data available with stock exchanges showed.

HDFC was the top gainer in the Sensex pack, rising up to 2.5 per cent, followed by Reliance Industries, UltraTech Cement, Hero MotoCorp, ITC, IndusInd Bank and HDFC Bank, On the other hand, Bajaj Auto, HUL, Nestle India and Asian Paints were trading in the red.

According to analysts, market finding some ground after a disappointing Union Budget. Besides, manufacturing activity hitting an eight-year high eased investor concerns over economic recovery.

Further, positive opening of other Asian stocks too buoyed domestic benchmarks, traders said.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading with gains.

Brent crude oil futures rose 0.51 per cent to USD 54.73 per barrel.

The rupee appreciated 17 paise to 71.20 against the US dollar in morning session.