The domestic equity barometers came off the day's high in mid-morning trade. The Nifty was trading a tad above the 14,800 mark. Capital goods stocks were in demand.
At 11:25 IST, the barometer index, the S&P BSE Sensex, was up 418.38 points or 0.84% to 50,162.70. The Nifty 50 index advanced 93.75 points or 0.91% to 14,809.30. The indices bounced after declining over 4% in the past five sessions.
In the broader market, the S&P BSE Mid-Cap index gained 1.21% while the S&P BSE Small-Cap index added 0.88%.
The market breadth was strong. On the BSE, 1690 shares rose and 901 shares fell. A total of 164 shares were unchanged.
Foreign portfolio investors (FPIs) sold shares worth Rs 893.25 crore, while domestic institutional investors (DIIs), were net sellers to the tune of Rs 919.88 crore in the Indian equity market on 22 February, provisional data showed.
Total COVID-19 confirmed cases worldwide stood at 111,709,399 with 2,473,742 deaths. India reported 147,306 active cases of COVID-19 infection and 156,385 deaths while 156,463 patients have been discharged, according to the data from the Ministry of Health and Family Welfare, Government of India.
The S&P BSE Capital Goods index rose 2.25% to 21,783.97, on bargain hunting. The index declined by 4.1% in the past three sessions.
So far this calendar year, the BSE Capital Goods index has gained 16.33% while the benchmark Sensex has added 5.17% during the same period.
Adani Green Energy (up 5%), Larsen & Toubro (up 2.83%), ABB India (up 2.35%), Bharat Electronics (up 2.30%) and Siemens (up 1.90%) were the top index gainers.
Carborundum Universal (down 2.97%), AIA Engineering (down 1.98%), Hindustan Aeronautics (down 1.34%) and Schaeffler India (down 0.93%) were major index laggards.
Stocks in Spotlight:
UPL fell 1.73% to Rs 530.5. A fire broke out in a plant in shutdown condition in the early hours of Tuesday morning at the company's Jhagadia unit in Gujarat.
Bharti Airtel added 0.32% to Rs 572.55. The telecom major will meet global fixed income investors on or after 23 February 2021, following which and subject to market conditions, the company will take a final decision with reference to the issuance of foreign currency bonds/notes, and a deal may or may not follow.
Adani Enterprises gained 0.20% to Rs 807.30. The company and EdgeConneX announced the establishment of a 50:50 joint venture. The JV will develop and operate data centers throughout India, leveraging the two partners complementary expertise and capabilities.
Asian stocks advanced on Tuesday. Markets in Japan are shut today for a holiday.
Policy makers are reportedly becoming concerned about the rapid rise in bond yields. European Central Bank President Christine Lagarde has reportedly said that her institution is "closely monitoring" the market for government bonds.
In US, the S&P 500 and Nasdaq closed lower on Monday as climbing Treasury yields and prospects of rising inflation triggered valuation concerns, hitting shares of high-flying growth companies.
The U.S. House of Representatives Budget Committee on Monday approved legislation with $1.9 trillion in new coronavirus relief, advancing a top priority of President Joe Biden toward a full House vote on passage expected later this week.
The measure passed the panel on a largely party-line vote of 19-16, as the U.S. death toll from the coronavirus pandemic surpassed the grim benchmark of 500,000 victims. Millions more have been left jobless by the pandemic.
All eyes will be on Federal Reserve Chairman Jerome Powell, who delivers his semi-annual testimony on the economy before the Senate Banking Committee on Tuesday. His comments on rates and inflation could determine the market direction for the week.
On the pandemic front, the White House said that it expects to ship out millions of delayed coronavirus vaccine doses this week after a sweeping winter storm disrupted logistics. Gov. Andrew Cuomo said on Sunday that a New York resident has tested positive for the Covid-19 variant first identified in South Africa.