Domestic stock markets started Tuesday's session on a strong note, a day after macroeconomic data fuelled hopes of monetary easing by central bank in coming months.
The Sensex jumped as much as 339 points to touch 36,192in early trade while Nifty hit 10,837, up 99 points from previous close.Top gainers on 50-scrip index were Yes Bank, Reliance Industries, Tech Mahindra, Wipro and Infosys, trading between 1.6 per cent and 2 per cent higher.Official data on Monday showed consumer inflation eased to an 18-month low while wholesale inflation registered an 8-month low.
That prompted some economists to be of view Reserve Bank of India (RBI) would change its policy stance to "neutral" in its next policy due in February, and cut key lending rate - repo rate - in next policy review in April.Domestic markets also took positive cues from Asian peers, where equitiespulled ahead after Beijing signalled more supportive measures to stabilise a slowing economy.Tokyo's Nikkei rose 0.6per cent after a market holiday on Monday while MSCI's broadest index of Asia-Pacific shares outside Japan recovered from early losses and advanced 0.6 per cent.
South Korea's Kospi hit one-month highs.Analysts however advised caution until more large caps announce their earnings reports."Instability and uncertainty is still intact in market.
Emphasis should be placed on earnings, movement in currency and also global market for further indications," saidRitesh Ashar,chief strategy officer atKIFS Trade Capital.Heavyweights Reliance Industries, Wipro and HDFC Bank are due to report their results for October-December quarter this week.(With agency inputs)