Benchmark Sensex rebounded about 425 points to end well above the 38,000-mark Tuesday, breaking its two-day falling streak on gains in heavy-weights RIL, SBI and ICICI Bank amid persistent foreign fund inflows and positive global leads.
The broader NSE Nifty too inched closer to the key 11,500 mark.
A stronger rupee also supported the rally. The rupee strengthened 19 paise to 68.77 against the dollar (intra-day).
Markets commenced on a strong note largely in line with a firming trend at other Asian bourses but remained range-bound as investors were cautious. Buying activity gathered momentum in late afternoon trade that helped both the indices Sensex and Nifty to regain their key levels.
The 30-share Sensex stayed in the green for the better part of the session and hit the day’s high of 38,297.70 as buying pace gathered momentum towards the fag-end.
It finally ended at 38,233.41, up 424.50 points, or 1.12 per cent.