Market mood seems to be improving with the benchmark indices rising for the third consecutive session on October 18, tracking upmove in global counterparts after recent weakness amid increasing fears of global recession.
Good quarterly earnings and consistent support from DIIs also aided the rally, while the reversal of UK Prime Minister Liz Truss' previously announced mini-budget by British Finance Minister Jeremy Hunt lifted global markets.
The market breadth also turned better, as about four shares advanced against three declining shares on the BSE. Even the ratio of 52-week high-low was strongly in favour of bulls.
As per the latest BSE data, 133 stocks touched 52-week high against 60 stocks hitting 52-week low on Tuesday, of which 69 stocks across BSE groups were at record high.
Deepak Fertilisers, Kalyan Jewellers, NHPC, RHI Magnesita India, Triveni Turbine, Best Agro Life, Data Patterns, Electronics Mart India (newly listed), Ksolves India, and Lancer Container Lines amongst the list of stocks that hit a new high.
In addition, stocks like Coal India, City Union Bank, Federal Bank, Godfrey Phillips, IDFC, IDFC First Bank, Indian Bank, Kirloskar Oil Engines, TVS Motor Company, and Westlife Development in the 'A' Group touched fresh 52-week high on Tuesday.
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Further, Anand Raj, Advance Syntex, Atlanta, Coastal Corporation, Grauer Weil, GSS Infotech, Pennar Industries, Rama Steel Tubes, Ravi Kumar Distilleries, Satin Creditcare Network, and Zenith Exports in the 'B' group also hit one-year high.
The benchmark indices itself gained a percent, with the Nifty50 rising 175 points to 17,487, and the BSE Sensex climbing 550 points to 58,961, as every sector participated in the momentum, taking the total three-day gains to around 3 percent each.
Bank, Auto, FMCG, IT, Metal and Oil & Gas indices gained one percent each.
The broader markets also showed strong participation given the good breadth. The BSE Midcap index rose 1 percent and Smallcap index gained seven-tenth of a percent.
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"Bulls are gaining strength aided by India's growth outperformance, good early Q2FY23 results, declining FII selling, steadily rising DII buying and the optimism ushered in by the festive season," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
He further said the whipsaw movement in the US market was a reflection of the fast changing perception about the US inflation expectations, terminal Fed rate and direction of the US economy.
A section of market participants now feel more optimistic about a soft landing of the US economy and have now turned bullish about the market, he added.
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