Mumbai: Indian equity benchmarks rallied 1 per cent for the second consecutive session on Tuesday as traders continued to add long positions ahead of Monsoon session of Parliament.
The market's rally was also on account of stability in global peers. The 30-share BSE Sensex rose 188.82 points or 1.08 per cent to close at 17,601.78 led by banks, technology, FMCG and auto stocks. Meanwhile, the 50-share NSE Nifty went up 54.15 points to 5,336.70.
Traders have opted to buy risky assets on hopes for some action on reforms by the government after Finance Minister Palaniappan Chidambaram said he plans to reduce the fiscal deficit and address tax concerns of overseas investors.
Indian equity benchmarks rallied 1 per cent as traders added long positions ahead of Monsoon session.
Anant Narayan of Standard Chartered Bank feels that finance minister P Chidambaram’s statements about reducing the widening fiscal deficit is encouraging for the markets. The market is building up hopes and is focusing too narrowly on diesel price hike, he added.