Index holds gains, courtesy Reliance, HDFC Bank and Infosys, while FMCG stocks were a drag on the Street.
A spike witnessed during the first hour of trade was held by the market for rest of the session, with the Nifty closing above 10,000-mark on Tuesday. The Sensex too ended the day on a good note.
Despite mixed global cues, Indian indices began the day with gains of about 80 points on the Sensex, while the Nifty managed to open above 10,000 in the opening tick.
The 30-share BSE Sensex was up 77.52 points at 31,924.41 and the 50-share NSE Nifty gained 28.20 points at 10,016.95. The market breadth was in favour of advances as 1,569 shares advanced against a fall of 1,141 shares.
Among the broader markets, midcaps had a day of outperformance with the index gaining around a percent, while smallcaps too gained one percent as well.
Meanwhile, on a sectoral basis, FMCG witnessed a day of correction, which dragged the indices from intraday gains. Positive moves were seen across, pharmaceuticals, IT, auto, metals, energy and infra, among others.
Among top gainers were Lupin, Axis Bank and UPL, while stocks such as ICICI Bank, Tata Steel, Vedanta and Eicher Motors lost the most.
In case of precious metals, gold rallied by Rs 145 to Rs 30,765 per ten gram at the bullion market, in line with a firming trend overseas amid increased buying by local jewellers.
Silver followed suit as prices went up by Rs 290 to Rs 40,990 per kg on increased offtake by industrial units and coin makers.
Bullion traders said a firming trend overseas where gold rose to the highest in more than a week as an uptick in geopolitical uncertainty raised demand for the precious metal as safe haven, kept gold and silver prices higher.
Besides, persistent buying by local jewellers to meet the ongoing seasonal demand at domestic spot market too supported the upside, they added.
On a stock-specific basis, stocks as Infosys, Reliance, HDFC Bank, Lupin, Cochin Shipyard and Adani Transmission, among others were in focus.
Infosys gained over 1 percent after it announced the record date for its buyback offer.
Lupin was up 2 percent as it received US FDA approval for generic Corgard tablets that are used to treat chest pain & hypertension. The company also launched painkiller generic Norco tablets in the US.
Cochin Shipyard surged over 11 percent on Rs 5,400 crore order from Indian Navy.
Biocon gained 7 percent after the US health regulator issued complete response letter for proposed biosimilar Pegfilgrastim, indicated for use in the treatment of cancer.
Meanwhile, Adani Transmission rallied 10 percent after exclusivity talks with Reliance Infrastructure for buying its Mumbai City power businesss. Reliance Infrastructure closed flat.
Among midcaps, fertiliser and sugar stocks rallied smartly. RCF, GNFC, Deepak Fertilisers and GSFC gained between 3 percent and 6 percent. Dwarikesh Sugar, Balrampur Chini, Shree Reunka Sugars, Bajaj Hindusthan, Dalmia Sugar, Mawana Sugars and Triveni Engineering gained 5-18 percent.
Further, Petronet LNG, Havells India, Jubilant Foodworks, Avenue Supermarts, Raymond, Nandan Denim, Indo Count, TVS Electronics and JM Financial rallied 2-20 percent.
The earnings season began with South Indian Bank posting 96 percent fall in Q2 profit, largely on account of doubling of provisions. The stock was lower by 6 percent.
In the primary market, as of 4:00 pm, MAS Financial Services’ IPO was oversubscribed a whopping 117 times on the last day, reflecting strong appetite among investors. In case of Indian Energy Exchange, the issue was subscribed 38 percent as of 4:00 pm on Day 2.
Going forward, the Street could be waiting for further cues from the upcoming earnings season. Tata Consultancy Services (TCS) will be first among major companies to announce the results on Thursday, October 12.
But a few market voices are not very upbeat about it. “This is not going to be a great quarter. We are looking at 8 percent growth in overall numbers,” Sanjeev Prasad, Managing Director, Co-head, Kotak Institutional Equities told CNBC-TV18 in an interview.
What's worse? Prasad expects growth only to come from the oil and gas space.“The sector will witness fantastic numbers. Strong refining margins of 10-11 dollars per barrel are seen,” he told the channel, adding that rest of the sectors may not paint a very pretty picture. "In case of automobiles, volumes are good, but margin compression is a challenge."