Indian equity benchmarks surged on Tuesday in a broad-based recovery led by heavyweights Reliance Industries, TCS and Infosys, extending gains to a second straight day in some respite for investors following a seven-day-long sell-off.

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NSE

Both headline indices surged as much as 2.3 percent during the session. The 30-scrip Sensex index gained as much as 1,201.6 points to touch 52,799.4 and the broader Nifty50 climbed to as high as 15,707.3, up 357.1 points from its previous close.

The India VIX — which gauges the expectation of volatility in the near term — plummeted 5.7 percent to 21.1, its biggest fall since May 30.

"The absence of fresh selling triggers in the domestic and global economies along with falling commodity prices relieved the heavily discounted equities... The recovery indicates that current uncertainties of inflation and monetary policy tightening have been factored in," said Vinod Nair, Head of Research at Geojit Financial Services.

However, with the highly sensitive nature of the current market, even the slightest inconvenience can trigger volatility, he warned.

Almost all of the Nifty50's constituents rose for the day. Titan, Hindalco, Coal India, JSW Steel, Tata Motors, Adani Ports and SBI — rising around 4-6 percent — were the top blue-chip gainers.

Reliance Industries, Infosys, TCS, ICICI Bank and HDFC together contributed more than 450 points to the gain in the 30-strong index.

Broader markets saw strong gains, with the Nifty Midcap 100 and Nifty Smallcap 100 indices finishing the day around 3.5 percent higher each.

Overall market breadth remained strongly in favour of the bulls throughout the day.

Aurum Capital Co-Founder Jiten Parmar views the current juncture as a good opportunity to enter quality names for the long term.

"Nobody knows what the bottom is... There are lots of pockets of value and lots of sectors that from a contrarian perspective look very good," he told CNBC-TV18.

Global markets

European shares began the day in the green, recouping some of the losses after hitting 17-month lows last week, though investors remained on the back foot amid concerns about aggressive hikes in COVID-era interest rates and their impact on economic growth.

The pan-European Stoxx 600 index was up 0.9 percent at the last count.

S&P 500 futures were up 1.8 percent, suggesting a higher opening ahead on Wall Street as investors geared up to return to the market after a long weekend.

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