Indian stock markets surged for the fourth straight session on Tuesday, with Sensex surging more than 700 points and the Nifty closing above 5800 level, helped by a rally from auto, capital goods and FMCG sector shares.
The benchmark BSE Sensex rallied 3.77 percent, or 727.04 points, to 19,997.10. The 50-share NSE Nifty climbed 3.81 percent, or 216.35 points, to 5,896.75.
Markets opened on a high note, tracking positive cues from Asian peers. Both Sensex and Nifty reported their biggest single day gains in more than four years as the rupee rose to a two-week high against the US dollar. Firm trend in global markets also added to the upward movement.
All the 13 BSE sectoral indices ended with gains. The auto sector rallied 5.98 percent and capital goods sector climbed 5.50 percent, while consumer durables sector surged 4.80 percent and FMCG sector rose 5.30 percent.
Telecom shares rallied after the Telecom Regulatory Authority of India (Trai) on Monday lowered prices for auctioning airwaves. Bharti Airtel rallied 8.15 percent and Idea Cellular Ltd. climbed 5.56 percent.
The overall market breadth is positive with 1503 advanced against 827 declines on the BSE.
Asian stock markets ended sharply higher on Tuesday as upbeat China economic data and buoyed sentiment, while fears over a US military attack on Syria also receded. Japan's benchmark Nikkei 225 surged 1.54 percent and Hong Kong's Hang Seng gained 0.99 percent, while South Korea's KOSPI advanced 0.98 percent and China's Shanghai Composite rose 1.15 percent.
"The recent data out of China has been signaling a bit of a recovery. You’re beginning to see traction globally. This is an opportunity to buy cyclical stocks even though I do expect some sort of a contained pull-back this year and volatility may pick up,” Mark Harris, who helps oversee about $1.2 billion as fund manager at City Financial in London, said in an interview to Bloomberg.
Data released by the National Bureau of Statistics (NBS) Tuesday showed that China's industrial production rose 10.4 percent on annual basis in August, the fastest pace in 17 months, topping economists estimation for a 9.9 percent growth. Retail sales also surged 13.4 percent in August, above analysts' estimation of 13.2 percent.