Banks, local cues help Nifty reclaim 9,100; Sensex closes 172 points higher

Driven by a rally in banking stocks, the market closed the day in the green zone, with the Nifty reclaiming 9100. The rally was also seen on the back of domestic developments on the GST front. This, coupled with strong Asian market movements, pushed the indices higher here.

At the close of market hours, the 30-share Sensex was up 172.37 points at 29411.56, while the Nifty was up 61.55 points at 9100.80.

The market breadth through the day was positive but was seen narrowing with every trading hour. At 3:30 pm, 1,439 shares had advanced against a decline of 1,405 shares, while 207 shares remained unchanged.

The midcap indices also had a good day, with the BSE midcap index closed 0.72 percent higher, while the NSE midcap index clocked a record-high mark.

Meanwhile, the Bank Nifty was nearly a percent higher at 21225.40.

"We expect volatility to increase in the next two sessions due to scheduled derivatives expiry. Even liquid stocks are witnessing erratic intraday swings, which is normal during consolidation phase. Traders should continue with positive yet cautious approach and refrain from going overboard," said Jayant Manglik, president, retail distribution of Religare Securities in a statement.

Dishman Pharma, Bharti Infratel, Axis Bank, Jet Airways, and Aurobindo Pharma were among the stocks that were in the news.

Shares of Dishman Pharmaceuticals rose as much as 20 percent intraday on the news that one of its contract research and manufacturing services (CRAMS) customer Tesaro got an approval from US FDA to market its new ovarian cancer drug Zeluja.

"We believe that the increase in the stock price is based upon market estimation that we are one of the suppliers of the API for Zeluja capsules, which got approved by the US FDA," the company said in a clarification to stock exchanges.

Bharti Infratel rose nearly 4 percent intraday on Tuesday as investors cheered the buzz of stake purchase by KKR. KKR and a Canadian pension fund purchased 10.3 percent stake in the firm from Bharti Airtel at a price of Rs 325 per share.

Meanwhile, Aurobindo Pharma rose 2 percent intraday Tuesday on USFDA approval for Meropenem Injection. The company received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Meropenem Injection 500 mg/ vial and 1g/vial.

Meanwhile, Axis Bank was the steady gainer through the day, possibly on the buzz of a deal with Kotak Mahindra Bank. The latter, however, ended the day lower ahead of the crucial board meeting to discuss fundraising plans.

This week will also see derivatives expiry of March series. During the same time, the market sees some volatility as traders roll over their contracts.

Going forward, experts also see some risks to the street. Sanjay Mookim, Director, India Equity Strategy at BofA ML feels there is very little room for an upside at the moment. In the best case scenario, Sensex could hover around 29,000 by December end. “We advise investors to stay liquid at these prices and stay with large-cap growth sector. They should avoid adding risk at current levels,” said Mookim in an interview to CNBC-TV18.