Markets extend gains despite Fed overhang

Mumbai: The Sensex and Nifty chalked up gains for the second straight session on Tuesday, propelled by across-the-board buying despite concerns over aggressive rate hikes by global central banks to tame inflation.

The US Federal Reserve along with its Swiss and British counterparts will announce their policy decisions later this week amid fears of the global economy tipping into recession due to rising interest rates.

The 30-share BSE Sensex climbed 578.51 points or 0.98 per cent to settle at 59,719.74. During the day, it rallied 964.56 points or 1.63 per cent to 60,105.79.

Similarly, the broader NSE Nifty went higher by 194 points or 1.10 per cent to end at 17,816.25. In intra-day trade, it advanced 297.05 points or 1.68 per cent to 17,919.30.

Sun Pharma was the top gainer among the Sensex constituents, spurting 4.71 per cent, followed by IndusInd Bank, Dr Reddy's, Tata Steel, Titan, Bajaj Finserv, ICICI Bank and Asian Paints.

Only four counters closed in the red -- Nestle India, PowerGrid, Infosys and Reliance Industries, shedding up to 0.64 per cent.

In the broader market, the BSE midcap index rallied 1.65 per cent and the smallcap gauge jumped 1.01 per cent.

All the BSE sectoral indices ended in the green, with healthcare jumping 2.81 per cent, followed by consumer durables (2.17 per cent), auto (1.59 per cent), consumer discretionary (1.47 per cent), metal (1.34 per cent) and commodities (1.29 per cent).

Elsewhere in Asia, markets in Seoul, Tokyo, Shanghai and Hong Kong ended higher.

European equity markets were trading in the negative territory in mid-session deals. The US markets had ended with gains on Monday.