Indian shares rose for the first time in five days on Tuesday, as oil prices retreated for a second consecutive session and overnight data pointed to continued improvement in the struggling U.S. housing market. Also, risk sentiment improved after German lawmakers voted overwhelmingly to endorse a second 130 billion-euro aid package for Greece.
Snapping a four-day losing steak, the benchmark 30-share Sensex ended the day up 285 points or 1.64 percent at 17,731, with 24 of its components rebounding. Infosys, Wipro and TCS fell between 0.3 percent and 1.8 percent as the rupee rebounded, helped by gains in regional stocks and robust capital inflows. ITC lost 0.8 percent, NTPC shed 0.4 percent and Sun Pharma edged down 0.3 percent.
The broader Nifty index climbed 98 points or 1.85 percent to 5,379 and the BSE mid-cap and small-cap indexes ended up 3.4 percent and 2.8 percent, respectively. The market breadth was extremely positive, with about 3 shares gaining ground for every share that declined on the BSE.
Market heavyweight Reliance Industries rose 1.9 percent on reports that the energy major and its joint venture partner BP Plc will submit a joint plan for the entire KG D6 oil and gas block to the government in a few weeks.
Realty stocks saw renewed buying, with DLF climbing 4.8 percent on reports the company will realize Rs. 700 crore from a soon-to-be launched luxury housing project in Gurgaon. Oberoi Realty, Godrej Properties, Unitech, Sobha Developers, DB Realty and HDIL rose 2-14 percent.
In the banking sector, SBI jumped almost 5 percent after the state-run lender cut interest rates on education loans. HDFC Bank rallied 3.3 percent, ICICI Bank advanced 2.7 percent and mortgage lender HDFC gained 0.9 percent.
Automakers such as Hero MotoCorp, Bajaj Auto and Tata Motors rose 2-5 percent, metal stocks like Tata Steel, Sterlite and Hindalco jumped 4-5 percent, power equipment maker BHEL soared 6.7 percent and engineering & construction firm Larsen & Toubro advanced 3.6 percent.
GVK Power & Infrastructure soared 8.1 percent after saying it has not signed any pact to sell equity stakes in oil and gas blocks. GMR Infrastructure climbed 7.1 percent on reports it is in talks with private equity investors to sell stakes in road projects.
ONGC and Gail India rose around a percent each on reports they are making a combined bid to acquire Africa-focused gas explorer Cove Energy. Bosch rose 3 percent on solid Q4 results.
Orchid Chemicals & Pharmaceuticals jumped 5 percent on reports the company would repay foreign currency convertible bonds worth $167 million. SKS Microfinance hit the 5 percent upper circuit limit after the company raised Rs.354 crore through a securitization deal.