Indian shares continued their strong momentum in the afternoon session on Tuesday, on the back of strong foreign fund inflows and improving domestic sentiment.
The S&P BSE Sensex rose 350 points to trade at 37,404 at 12.42 pm, while the NSE Nifty50 gained 103 points to trade at 11,271.
Mirroring the improved risk appetite, the rupee rose to its highest in two-and-a-half months. The rupee rose as high as 69.56 per dollar, its strongest since January 2 and 0.47 percent firmer than Monday's close of 69.89.
The gains come after the net foreign portfolio inflows into Indian shares hit a 15-month high of $2.42 billion in February, a big swing from 2018’s net outflows of $4.4 billion, according to Reuters.
Broader markets retreated from the day's high. The Nifty MidCap index was up by just half a percent after rising nearly 1.5 percent during the day. The BSE MidCap also traded up 0.64 percent.
Among the index gainers, Bharti Airtel shares advanced over 5 percent after reports that the telco will sell up to 32 percent stake in Bharti Infratel to another unit Nettle Infra for Rs 289.66 per share. The move will bring down Bharti Airtel's stake in Infratel arm to 18.33 percent from current 50.33 percent in the company.
L&T, ICICI Bank, Adani Ports, UltraTech Cement, IndusInd Bank and Sun Pharma shares moved higher, rising between 1 and 5 percent. Bajaj Finance, NTPC, Tech Mahindra, Hero Moto, Infosys and SBI, slipped by up to a percent.
Shares of Gujarat Mineral Development Corp. Ltd (GMDC) surged nearly 10 percent on Tuesday after Edelweiss Securities initiated coverage on the stock with a "buy" rating and a target price of Rs 105 per share.
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