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The Sensex and Nifty ended marginally down as losses in financial stocks offset gains in technology firms.
The 30-share BSE index Sensex ended lower by 14.04 points or 0.04 per cent at 31,297.53 and the 50-share NSE index Nifty closed down 4.05 points or 0.04 per cent at 9,653.50.
Among BSE sectoral indices, IT index was the star-performer and was up 0.97 per cent, followed by consumer durables 0.97 per cent, TECk 0.75 per cent and oil & gas 0.54 per cent. On the other hand, power index was down 0.21 per cent, infrastructure 0.17 per cent, FMCG 0.16 per cent and banking 0.16 per cent.
Top five Sensex gainers were Tata Motors DVR (+1.68%), ONGC (+1.6%), Infosys (+1.54%), Cipla (+1.18%) and Tata Steel (+0.56%), while the major losers were PowerGrid (-2.00%), Lupin (-1.63%), Axis Bank (-1.56%), HDFC (-1.22%) and Hero MotoCorp (-1.02%).
IT stocks rebound
Shares of information technology companies, including Infosys Ltd, jumped tracking an overnight rebound in US technology stocks.
Asian shares were also up, with Japan's Nikkei rising more than 1 per cent to a near two-year high, tracking gains in US hi-tech shares as investors bet on solid growth in the economy and corporate profits globally.
“The Indian IT sector is mostly trading at fairly good valuations at the moment, specifically in the mid-cap space, said Amit Chandra, senior manager and research analyst at HDFC Securities.
Short-term triggers such as bonus and share buybacks due from companies such as Wipro Ltd are also boosting overall sentiment in the sector, he added.
The Nifty IT index was up 0.97 per cent, with Infosys, up 1.54 per cent. The stock had fallen in the last three sessions.
Among mid-caps, Mindtree Ltd gained as much as 1.8 per cent, while Tata Elxsi Ltd rose as much as 2.5 per cent.
Bank stocks down
However, weakness in banking stocks capped the index gains. The Nifty PSU Bank index fell as much as 1.05 per cent.
The farm loan waivers for small-and-marginal farmers announced by the Punjab government on Monday are impacting the PSU sector particularly, said Sunil Sharma, chief investment officer, Sanctum Wealth Management.
Punjab National Bank was the top percentage loser on the Nifty PSU Bank index, declining as much as 2.5 per cent.
Asian shares
Japan's Nikkei rose more than 1 per cent to a near two-year high on Tuesday, encouraged by rebound in US hi-tech shares as investors bet on solid growth in the economy and corporate profits globally.
MSCI's broadest index of Asia-Pacific shares outside Japan held firm near a two-year high struck last week, but was little changed on the day, with gains in high-tech firms offset by a decline in Australian shares.
US stocks rose on Monday, with the S&P 500 and the Dow hitting record highs with growth sectors such as technology in favour again as investors appeared to regain confidence in the economy after upbeat comments from Federal Reserve officials.
Nasdaq's biotechnology index rose 2.5 per cent in its biggest one-day gain since February while the S&P's healthcare index had a record-high close.
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