Sensex, Nifty end higher after 2-day sell-off; banking, metal stocks shine

Benchmark stock indices rebounded on Tuesday after two days of losses on buying in metal, banking and energy shares and bullish trend in US markets. BSE's 30-share flagship index Sensex rose 275.62 points, or 0.42 percent, to settle at 65,930.77. It gained 427.21 points or 0.65 percent to 66,082.36 during the day.

The broader Nifty rose 89.40 points, or 0.45 percent, to 19,783.40.

Among the Sensex companies, JSW Steel, Titan, Tata Steel, Sun Pharma, Reliance Industries, Bharti Airtel, Tata Motors and HDFC Bank were the top gainers.

NTPC, Tech Mahindra, Maruti, State Bank of India and Larsen & Toubro were left behind.

Vinod Nair, head of research at Geojit Financial Services said, "Today, the market showed a positive momentum, with focus on the minutes of the recent Fed meeting. Declining inflation and recent cooling jobs data in the US provide a foundation for the dovish. Comment from the Fed ." Falling bond yields and the dollar index indicate growing speculation about a potential peak in the interest rate cycle.

"This will attract funds in emerging markets. Broader market gains were led by consumer durables and realty on strong recovery in festive demand," Nair added.

The US dollar index ended the day down 0.10 percent at 103.33 minutes after the Fed.

In Asian markets, Seoul settled with gains while Tokyo, Shanghai and Hong Kong closed lower.European markets saw mixed business. US markets ended in positive territory on Monday as bond yields fell and the dollar weakened.

Global oil benchmark Brent crude fell 0.61 percent to USD 81.82 a barrel.Foreign Institutional Investors (FIIs) on Monday invested Rs. 645.72 crore equity offloaded, according to exchange data.

The benchmark BSE settled down 139.58 points, or 0.21 percent, at 65,655.15 on Monday. The Nifty was down 37.80 points, or 0.19 percent, at 19,694.