The market firmed up in early afternoon trade, supported by strength in banks shares. At 12:21 IST, the S&P BSE Sensex was up 116.95 points or 0.29% at 39,901.47. The Nifty 50 index was up 29.95 points or 0.25% at 11,952.65. Positive global cues boosted investors sentiment.
Global shares were positive as investors were relieved that the United States shelved plans to impose tariffs on Mexico. Hopes that US interest rates will be cut as early as next week also supported shares.
Broader market recovered from early losses. The S&P BSE Midcap index was up 0.29%. The S&P BSE Smallcap index was up 0.02%.
The market breadth was negative. On BSE, 918 shares advanced and 1308 shares declined. A total of 123 shares were unchanged.
Tata Motors was up 1.50%. Jaguar Land Rover (JLR) retail sales in May 2019 were 42,370 vehicles, down 12.2% compared to May 2018. Higher retail sales of the new Range Rover Evoque and the all-electric I-PACE were offset by lower sales of other models, primarily in China.
Private sector banks were in demand. Yes Bank (up 2.13%), IndusInd Bank (up 1.64%), Federal Bank (up 0.95%), ICICI Bank (up 0.72%), RBL Bank (up 0.72%), City Union Bank (up 0.26%), HDFC Bank (up 0.24%) and Kotak Mahindra Bank (up 0.07%), edged higher. Axis Bank was down 0.02%.
Most public sector banks rose. Canara Bank (up 1.55%), Bank of Baroda (up 1.53%), Allahabad Bank (up 0.86%), Punjab National Bank (up 0.71%) and State Bank of India (up 0.29%), edged higher. Bank of India (down 0.06%) and IDBI Bank (down 0.14%), edged lower.
Pharmaceutical shares were mixed. Cadila Healthcare (down 0.91%), Dr Reddy's Laboratories (down 0.76%), GlaxoSmithKline Pharmaceuticals (down 0.6%), Glenmark Pharmaceuticals (down 0.56%), Piramal Enterprises (down 0.21%) and Strides Shasun (down 0.12%), edged lower. Lupin (up 0.22%), Alkem Laboratories (up 0.26%), IPCA Laboratories (up 0.26%), Wockhardt (up 0.26%), Divi's Laboratories (up 0.35%), Cipla (up 1.4%) and Aurobindo Pharma (up 2.14%), edged higher.
Drug major Sun Pharmaceutical Industries was down 3.84%. A foreign brokerage firm reportedly downgraded its recommendation on the stock to sell from neutral. The brokerage reportedly cut its price target to Rs 355 from Rs 437 earlier.
Overseas, Asian stock markets were trading higher on Tuesday. In the US market, stocks advanced as investors cheered the agreement struck between the US and Mexico to avoid tariffs being implemented. Meanwhile, on the US-China trade front, President Donald Trump reportedly said on Monday he was ready to impose another round of punitive tariffs on Chinese imports if he cannot make progress in trade talks with Chinese President Xi Jinping at the G20 summit. US president reportedly expects to meet Xi at the June 28-29 summit in Osaka, Japan.