Benchmark Sensex spurted by 482 points while broader Nifty closed above the 21,700 level on Tuesday on buying in banking, financial services and IT sector stocks as easing retail inflation boosted investor sentiment.

The 30-share BSE Sensex surged 482.70 points or 0.68 per cent to settle at 71,555.19. The gauge moved between a high of 71,662.74 and a low of 70,924.30 during intra-day.

The broader NSE Nifty also soared 127.20 points or 0.59 per cent to close at 21,743.25 with 39 of its components ending in the green and 11 in the red.

Among Sensex stocks, ICICI Bank was the lead gainer, rising by 2.46 per cent. Axis Bank, Wipro, Kotak Mahindra Bank and NTPC were among the major gainers.

The five stocks that defied the trend included UltraTech Cement, Mahindra & Mahindra, Titan, Tata Motors and Nestle.

"The domestic market largely recovered from yesterday's losses, driven by gains in the banking sector. Improved sentiment stemmed from a decline in domestic inflation, which is expected to boost rural demand," said Vinod Nair, Head of Research, Geojit Financial Services.

"However, investors remained cautious ahead of US inflation data, anticipating a moderation, pivotal for the Fed's interest rate trajectory," he added.

Government data released on Monday showed India's retail inflation declined to a three-month low of 5.1 per cent in January. However, the country's industrial production growth slowed to 3.8 per cent in December 2023.

Among sectoral indices, bankex and financial services gained 1.44 per cent and 1.23 per cent, respectively. While services rose 1.45 per cent, tech advanced 0.40 per cent and energy gained 1.03 per cent.

Metal and commodities were major losers, declining 1.44 per cent and 0.94 per cent, respectively.

BSE smallcap index inched up 0.18 per cent while midcap and largecap indices closed with a gain of 0.61 per cent each.

In Asia, Tokyo's Nikkei 225 and China's Shanghai Composite settled in the positive territory while Hong Kong's Hang Seng was in the red.

European markets were in the red with CAC 40 of France and DAX of Germany declining 0.32 per cent and 0.62 per cent, respectively.

The US market ended Monday's session on a mixed note.

Global oil benchmark Brent crude rose 0.78 per cent to USD 82.64 a barrel on Tuesday.

On Monday, Sensex settled 523 points or 0.73 per cent lower at 71,072.49 points while the Nifty closed 166.45 points or 0.76 per cent down at 21,616.05 points.

Foreign Institutional Investors (FIIs) were net buyers as they bought equities worth Rs 126.60 crore, according to exchange data.

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