Heavyweight stocks were muted compared to the sector-wise and mid and smallcap upsides on Tuesday, said Vinod Nair, Head of Research at Geojit Financial Services.
The chemical sector emerged as a clear winner due to improvements in product prices stemming from stability in the demand and supply scenario.
Meanwhile, the metals sector rallied in anticipation of further green shoots from the Chinese government and central banks, aimed at improving the local economy.
The benefits from festival demand were evident in sectors such as consumer durables, manufacturing, power, and real-estate, he said.
Niche sectors like speciality chemicals saw buying interest after a long time on the back of news flows regarding the surge in chemical prices in China, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.
Most of the sectoral indices were in green while Nifty Metal outperformed with gains of 1.28 per cent. The hopes of stimulus in China are supporting metal prices at lower levels, which fuelled optimism in metal market, said Omkar Kamtekar, Research Analyst, Bonanza Portfolio.
In anticipation of critical inflation and jobs statistics this week that might determine the future of interest rates, gold prices rose on Tuesday as the recent rally in the US dollar and Treasury yields showed symptoms of exhaustion.
That was one of the factors contributing to a flat market at the global level, Khemka said.
UPL, Hindalco Industries, Adani Ports, Hero MotoCorp and Tata Steel were among the top gainers on the Nifty, while the top losers were Bharti Airtel, HUL, Axis Bank, Dr Reddy's and Reliance Industries.
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As venture capital (VC) funding surged in India this year, China saw a 22.5 per cent decline in VC funding by both volume and value in the January-November period, a report showed on Thursday.
Indian share market opens in green, Nifty above 23,800
At around 9:37 am, Sensex was trading at 78,744.55 after gaining 271.68 points or 0.35 per cent, while the Nifty was trading at 23,812.50 after gaining 84.85 points or 0.36 per cent.
Indian share market ends in red ahead of key global policy decisions
Ahead of key policy decisions especially from the US Federal Reserve, the Indian stock market closed in red on Tuesday as selling was seen in the PSU bank, auto, IT, financial service, pharma, FMCG, metal, and realty sectors of Nifty.
Buy on dips strategy working well in Indian stock market amid sharp rebound
The surge in the Indian stock market on Friday helped the Indian benchmark indices end the week on a positive note. A strong 2,000-point rebound from the lows suggests that the buy-on-dips strategy is working well in the market, experts said on Saturday.