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Indian shares rose on Tuesday led by gains in oil explorers such as Reliance Industries, tracking a rise in crude oil prices after a slump to near 11-year lows in the previous session triggered investors' buying appetite.
The Sensex ended the day up 170.09 points or 0.68 per cent at 25,320.49, while the NSE Nifty was up 50.85 points or 0.66 per cent at 7,700.90. Of the Nifty 50 stocks, 32 advanced and 16 declined.
The big gainers on the Nifty included Bosch (+3.09%), Lupin (+2.35%), Reliance (+2.19%), ONGC (2.3%) and HUL (+2.64%).
Tech Mahindra (-4.10%), Idea (-2.2%), PNB (-2.7%), Wipro (-1.5%) and ICICI Bank (-1.3%) were the top Nifty losers.
The Bank Nifty ended down 0.29 per cent. PNB, Canara Bank, ICICI Bank, and Bank of India ended in the red with losses of up to 2.7 per cent.
Reliance Industries moved up 2.19 per cent to Rs 976 on the NSE.
Banking stocks were under pressure on worries that a widely anticipated US interest rate hike by the Federal Reserve may prompt the Reserve Bank of India to keep key interest rate unchanged for longer.
The Reserve Bank of India kept its key lending rate unchanged on December 1, leaving the door open for more easing but making that dependent on meeting a challenging inflation target for 2017.
Investors have mostly priced in a Fed rate hike this week, with the main question now hinging on how many increases will follow next year.
The US Federal Reserve will move very gradually after it delivers what is widely expected to be its first interest rate hike in nearly a decade on December 16, according to a Reuters poll that points to a tame inflation outlook for next year.
"(RBI) Governor (Raghuram) Rajan will keep an eye on Fed's comments before deciding on the future interest rate trajectory," said Deven Choksey, managing director at K R Choksey Securities.
Retail inflation rose to 5.41 per cent in November, 4th straight month of uptick as prices of vegetables, pulses and fruits went up further to push the rate of price rise above the Reserve Bank’s comfort level.
Value buying was seen in recently battered blue-chip stocks, said brokers.
Foreign institutional investors net bought index futures worth Rs 165 crore and stock futures worth Rs 124 crore on the NSE on Monday.
FIIs net bought index options worth Rs 1,260 crore.
FIIs net sold Indian shares worth Rs 157 crore on the BSE, NSE, and the Metropolitan Stock Exchange combined, while domestic institutional investors net bought shares worth Rs 386 crore, according to provisional data on the NSE.
Asian markets ended down on Tuesday. Hang Seng finished 0.17 per cent lower and Nikkei shed 1.68 per cent. Shanghai Composite index lost 0.29 per cent.
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