The trading session on Tuesday was marked by high volatility. The market, after opening on a strong note at 15,358.69 points, succumbed initially to the 50-bps hike in the cash reserve ratio by the Reserve Bank of India (RBI) and touched a low of 15,224.82. But soon, it regained strength on the back of strong performance registered by stocks belonging to the capital goods and metal sectors. The banking sector stocks also ended the day with moderate gains.
The 30-share Sensex of the Bombay Stock Exchange (BSE) ended the day at 15,550.99 points with a gain of 290.08 points or 1.90% after touching an intra-day high of 15,568.85. On the other hand, the S&P CNX Nifty of the National Stock Exchange (NSE) ended the day at 4,528.85 points with a gain of 88.8 points or 2%.
There was also a certain amount of short covering in the derivatives market, which pushed the market higher. The Nifty August futures ended the day at 4,510 with the discount narrowing down to 18.85 to spot Nifty, which was nearly 40 points the previous day.