Mumbai: Market benchmarks managed closed in the green on Tuesday after five sessions of steep losses as investors accumulated recently-battered banking, auto and FMCG counters amid a supportive trend in European equities.
However, traders said the overall sentiment remains cautious ahead of a crucial two-day meeting of the US Federal Reserve where it will take a call on its rate hike trajectory.
Russia-Ukraine tensions, stubborn inflation and unabated selling by foreign funds are the other risk factors in the near-term, they added.
After plunging below the 57,000-level in opening trade, the 30-share BSE Sensex gained momentum as the session progressed to finish 366.64 points or 0.64 per cent higher at 57,858.15. Similarly, the broader NSE Nifty rose 128.85 points or 0.75 per cent to close at 17,277.95.
Maruti topped the Sensex gainers' chart with a jump of 6.88 per cent after the country's largest carmaker posted a consolidated net profit at Rs 1,041.8 crore for the December quarter — down 48 per cent y-o-y but well above analyst estimates. Axis Bank, SBI, IndusInd Bank, Bharti Airtel, PowerGrid and NTPC were among the other prominent gainers, spurting as much as 6.76 per cent.
In contrast, Wipro, Bajaj Finserv, Titan, Infosys, Tech Mahindra and UltraTech Cement led the laggards list, shedding up to 1.75 per cent.
Barring IT and consumer durables, all BSE sectoral indices mustered gains. Telecom climbed 2.46 per cent, followed by utilities, power, auto, bankex and realty.
In the broader markets, the BSE midcap and small cap indices advanced up to 1.03 per cent.
World stocks were mixed as investors awaited the Fed's policy announcement due Wednesday.
In Asia, bourses in Hong Kong, Shanghai, Tokyo and Seoul ended sharply lower.
Stock exchanges in Europe were trading with significant gains in mid-session deals.
International oil benchmark Brent crude advanced 0.89 per cent to USD 87.04 per barrel.
The rupee depreciated by 18 paise to close at 74.78 against the US dollar.
Foreign institutional investors (FIIs) remained net sellers in the capital market as they sold shares worth Rs 3,751.58 crore on Monday, according to stock exchange data.
Domestic markets will remain closed on Wednesday on account of Republic Day.