Equity benchmark Sensex jumped over 200 points in early trade on Tuesday, tracking gains in index majors Reliance Industries, ICICI Bank and HDFC twins amid largely positive cues from Asian peers.
The 30-share BSE index was trading 236.71 points or 0.49 per cent higher at 48,120.09.
Similarly, the broader NSE Nifty advanced 68.55 points or 0.48 per cent to 14,379.35.
ONGC was the top gainer in the Sensex pack, rising over 3 per cent, followed by M&M, PowerGrid, Bajaj Finance, L&T, ICICI Bank and Bajaj Finserv.
On the other hand, TCS, Tech Mahindra, Infosys, Dr Reddy's and HCL Tech were among the laggards.
In the previous session, Sensex sank 1,707.94 points or 3.44 per cent to end at 47,883.38, and Nifty plunged 524.05 points or 3.53 per cent to finish at 14,310.80.
The benchmark index fell below the 48000-mark, causing investors to lose Rs 8.77 lakh crore in Monday’s session. Market experts warned that equities were likely to remain under pressure and there could be more corrections as there could be bad news on the virus front.
They, however, added that investors should also look at nibbling quality stocks in such times as the progress in vaccine rollouts and peaking of the number of Covid-19 cases could bring back the rally during the next few weeks.
“There is a growing worry that the rising number of Covid-19 cases will affect economic activity, putting speed breakers on the small growth that we saw during the third quarter. Investors are also concerned that more states may follow the Maharashtra route and go for a full lockdown. On the other hand, we have reports of vaccine shortage in various parts of the country,” an analyst from a foreign brokerage had said.
Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 1,746.43 crore on Monday, according to provisional exchange data.
Domestic equities look to be modestly good at the moment, said Binod Modi Head-Strategy at Reliance Securities.
"While a sharp increase in COVID-19 daily cases in the country and possibility of larger economic restrictions has dented investors' sentiments, 4QFY21 earnings began on a strong note with TCS delivering strong earnings performance with encouraging management commentaries.
"This should help IT stocks to remain in focus in the near term," he noted.
US equities finished with moderate losses overnight ahead of March inflation data and quarterly earnings of key lenders.
Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo were trading on a positive note in mid-session deals, while Shanghai was in the red.
Meanwhile, international oil benchmark Brent crude was trading 0.49 per cent higher at USD 63.59 per barrel.
