Sensex rallies over 250 points on global cues

Mumbai: Equity benchmark BSE Sensex on Tuesday rallied over 250 points on heavy buying in auto and banking stocks amid positive cues from other Asian markets and US-China trade talks.

The 30-share index was trading 256.08 points, or 0.68 per cent, higher at 37,942.45. Similarly, the 50-share NSE Nifty rose 74.35 points, or 0.66 per cent, to 11,263.55.

In the previous session, the 30-share index fell 196.82 points, or 0.52 per cent, to close at 37,688.28, and the broader NSE Nifty declined 95.10 points, or 0.84 per cent, to settle at 11,189.20.Tata Steel, ICICI Bank, Bharti Airtel, M&M, Vedanta Ltd, Sun Pharma, Bajaj Finance, Tata Motors, Axis Bank and Maruti were among the other top gainers, rallying up to 1.54 per cent. While, HUL, ITC, NTPC, Kotak Bank, and Hero MotoCorp were the biggest losers, shedding up to 0.66 per cent.

The resumption of trade talks between the US and China on Tuesday will be the first round of negotiations since May this year. However, investors are sceptical over the positive outcome of the meeting between the two strongest economies.

Global investor sentiment was positive, but the gains were capped as investors were cautious ahead of crucial talks between American and Chinese officials.

The market is also awaiting the outcome of the US Federal Reserve's meeting scheduled for Wednesday this week.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 704.42 crore on Monday, as per provisional data.

Elsewhere in Asia, while Shanghai Composite Index, Hang Seng, Nikkei and Kospi were trading on a positive note in their respective early sessions. The US markets too ended in positive terrain on Monday.

Meanwhile, the rupee declined by 3 paise to 68.78 against the US dollar in early trade.

The global crude benchmark, Brent Oil, was trading 0.42 per cent higher at USD 63.98 a barrel.