Sensex ends 173 pts higher on global cues; IT, banks gain

The benchmark Sensex bounced back on Tuesday after witnessing losses for the previous three consecutive days and closed 153 points higher. The rally was led by positive global cues, which was imminent after losses as well as some consolidation in the last few days.

European markets like CAC, DAX and FTSE were trading 2-3% higher while Dow Jones futures gained 1% and Nasdaq futures went up 1.4%, at the time of closing of Indian equities. Even commodities witnessed buying interest; Crude Oil futures rose 1.12% to USD 72.95 a barrel on the New York Mercantile Exchange.

Base metals like copper, zinc, nickel, led, aluminium and tin gained 0.6-1.5% on the London Metal Exchange. Gold went up 0.3% at USD 1210.72 an ounce.

Asian markets also recovered after initial downtrend; Shanghai rose 1.92%. Hang Seng, Jakarta and Taiwan Weighted moved up 1.2-1.5%. Nikkei, Straits Times and Kospi rose 0.6-0.8%.

The 30-share BSE Sensex closed at 17,614.48, up 173.04 points or 0.99% and the 50-share NSE Nifty rose 53.15 points or 1.02% to settle at 5,289.05. The Nifty July futures ended at 11 points premium.

UBS Securities remains positive on India despite global worries, its Head of Research, Suresh Mahadevan, told CNBC-TV18. "The markets are trading at 13 times forward earnings. We are estimating a earnings per share of Rs 1,345 for the Sensex in FY12." He advises buying on dips as valuations are attractive.