Mkts get a boost on earnings optimism

Mumbai: The benchmark Sensex on Tuesday climbed nearly 239 points to close at 38,939.22 amid hopes of a robust earnings season and positive cues from global peers.

Besides, sustained buying in banking and auto stocks towards the fag-end of the session also pushed the markets up, brokers said. After swinging over 350 points, the 30-share Sensex index settled 238.69 points, or 0.62 per cent, higher at 38,939.22.

In similar movement, the broader NSE Nifty rose 67.45 points, or 0.58 per cent, to 11,671.95.

After a highly volatile session, the market surged towards the fag-end of the trade with BSE bankex, auto, realty and metal indices gaining up to 1.40 per cent.

"Banks outperformed as outlook improved led by reduction in stressed assets, repo rate and pick up in credit growth.

But valuation is on a premium level while start of the first phase of polling may bring volatility in the market," analyst said.

Foreign institutional investors (FIIs) purchased Rs 329.60 crore on Monday, while domestic institutional investors (DIIs) sold equities to the tune of Rs 623.81 crore, provisional data available with stock exchanges showed.

Meanwhile, the rupee appreciated 25 paise to 69.41 against the US dollar intra-day.The benchmark Brent crude futures were trading 0.13 per cent higher at $71.19 per barrel.