Markets close higher for 2nd day running

Market benchmark indices Sensex and Nifty managed to close higher for the second straight session on Tuesday, led by gains in banking, auto, PSU and power stocks despite weak global cues. 

Banking shares gained after the Reserve Bank allowed lenders to spread provisions for bond losses in the third and fourth quarters of the previous fiscal over the next four quarters. 

An appreciating rupee against the dollar also supported the uptick. 

The 30-share Sensex resumed lower and slipped further to hit a low of 33,153.83 on a bearish trend in other Asian markets, tracking overnight losses at the Wall Street on weakness in technology shares and trade tension between the US and China. 

Later, at the fag-end, it staged a comeback to recover losses to scale the day's high of 33,402.94, before settling 115.27 points, or 0.35 per cent, higher at 33,370.63. 

The gauge had gained 286.68 points on the first session of new fiscal on Monday. 

The NSE 50-share Nifty, after moving between 10,171.05 and 10,255.35 on alternate bouts of selling and buying, concluded 33.20 points, or 0.33 per cent, higher at 10,245. 

Meanwhile, domestic institutional investors bought shares worth a net Rs 413.16 crore, while foreign portfolio investors sold shares worth Rs 689.75 crore on Monday, provisional data released by the stock exchanges showed.

Photographs: Arko Datta/Reuters.