Indian equity indices Sensex and Nifty on Tuesday surged
over 2.5% to record their best single-day gains in three months, on the back of
heavy buying in metal, energy and banking stocks amid a global rally in stocks.

The BSE Sensex jumped 1,344.63 points or 2.54% to settle
at 54,318.47 points with all of its constituents closing with gains. During the
day, it surged 1,425.58 points or 2.69% to 54,399.42.

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The broader NSE Nifty zoomed 417 points or 2.63% to close
at 16,259.30. All the 50 stocks gained and were led by steel and energy
stocks.

Both Sensex and Nifty posted their best single-day gain
since February 15.

All the sectoral indices settled higher with the metal
index rising over 7% and other indices up between 1-3%. BSE midcap and smallcap
indices surged over 2% each.

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Major gainers from the 30-share Sensex pack were Tata
Steel up by 7.62%, Reliance up by 4.26%, ITC up by 4.15%, ICICI Bank up by
3.97%, Wipro up by 3.97%, Larsen and Toubro up by 3.80%, HCL Tech up by 3.77%,
Maruti Suzuki up by 3.76% and Bajaj Finance up by 3.38%.

The rupee recovered from its all-time intra day low of 77.79 to close higher by 7 paise at 77.48 per US dollar over the last close of 77.55 on a stellar rally in domestic stock markets

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“A ferocious up-move from the metal index lifted
Reliance together with other sectoral indices leaving bears gasping and
covering short positions and looking out for reasons for the rally,” S
Ranganathan, Head of Research at LKP securities said.

On a day when WPI for April crossed 15%, over 2.5% rise
in benchmark indices coupled with the breadth of the rally surprised many on
the street despite the move coming after a relentless fall, Ranganathan added.

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Among Asian markets Hong Kong, Seoul, Tokyo and Shanghai
closed higher on expectations of easing of COVID-19 related restrictions by
China as the number of cases declined.

European stock exchanges were trading in the green in the
afternoon session.

US stock exchanges had settled on a mixed note on Monday.

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India’s largest insurer Life Insurance Corporation of
India (LIC) on Tuesday made a lacklustre debut on stock exchanges, listing at
over an 8% discount after a successful initial public offering (IPO) which
raised Rs 20,557 crore for the exchequer.

In the previous trade, the BSE Sensex surged 180.22
points or 0.34% to settle at 52,973.84 points. The Nifty gained 60.15 points or
0.38% to finish at 15,842.30 points.

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Brent crude, the international oil benchmark gained 0.49%
to USD 114.8 per barrel.

According to stock exchange data, foreign institutional
investors continued to offload shares worth Rs 1,788.93 crore on Monday.