Mumbai– The benchmark Sensex advanced by 424 points on Tuesday while the Nifty jumped 129 points over a strong recovery in global markets. The gains on the bourses were led by banking and finance stocks.

The PSU Bank Nifty index closed 3.13 per cent higher. Except for the export-oriented IT sector stocks, which declined owing to the gains by the rupee against the US dollar, all the sectors gained.

Major Asian markets closed on a positive note, barring the Shanghai index. European indices like FTSE 100, DAX and CAC 40 traded in the green.

“After a subdued opening, the market bounced back sharply and covered Monday’s losses due to positive global peers. Global growth outlook still remains a concern while rise in US 10 year bond yield after two days of fall gave some respite to investor sentiment,” said Vinod Nair, Head of Research, Geojit Financial Services.

“The rebound was broadbased except IT index due to strengthening rupee. Gradual fall in Foreign Institutional Investors (FII) inflows added some caution among investors which may end up with some consolidation in the near term, after a sharp rally in the short term.”

The BSE Sensex closed 424.50 points higher at 1.12 per cent to 38,233.41 while the Nifty jumped to 129 point or 1.14 per cent at 11,483.25.

The top gainers were NTPC, State Bank of India (SBI), Vedanta, Reliance Industries and ICICI Bank which surge in the range of 2 to 3 per cent.

The losers in the Sensex pack were Infosys, down 1.23 per cent, while ITC, Larsen and Toubro, Tata Consultancy Services (TCS) and Bajaj Auto also declined up to 1 per cent. (IANS)