Sensex surges nearly 400 pts in early trade: Nifty tops 11,500

The BSE benchmark Sensex jumped nearly 400 points in early trade on Tuesday tracking gains in index majors Kotak Bank, the HDFC twins and ICICI Bank amid mixed cues from global markets.

After opening on a choppy note, the BSE Sensex was trading 399.53 points or 1.03 per cent higher at 39,027.82; while the NSE Nifty was up 116.70 points or 1.02 per cent at 11,504.20.

IndusInd Bank was the top gainer in the Sensex pack, surging around 4 per cent, followed by NTPC, Tata Steel, Bajaj Finance, SBI, Asian Paints, M&M, Kotak Bank, the HDFC duo and Bajaj Finserv.

On the other hand, ONGC and ITC were the laggards.

In the previous session, Sensex plunged 839.02 points or 2.13 per cent to 38,628.29, while the Nifty tanked 260.10 points or 2.23 per cent to end at 11,387.50.

Exchange data showed that foreign institutional investors sold equities worth Rs 3,395.49 crore on a net basis on Monday.

According to traders, market shrugged off the slump in GDP and weak global cues by rebounding around 1 per cent after previous session's low. Buying in financial stocks lifted key benchmarks.

India''s economy suffered its worst slump on record in April-June, with the gross domestic product (GDP) contracting by 23.9 per cent as the coronavirus-related lockdowns weighed on the already-declining consumer demand and investment.

Bourses in Shanghai and Seoul were trading with significant gains in mid-day deals, while Hong Kong and Tokyo were in the red.

Stock exchanges on Wall Street ended on a mixed note in overnight session.

Global oil benchmark Brent crude was trading 1.04 per cent higher at USD 45.75 per barrel.