The Indian market surged on positive global cues, Sensex and Nifty closed at over five-month highs. The benchmark Nifty index gained 94 points to close at 10,947 while the Sensex advanced 304 points to 36,240.

Share Market Live

NSE

Reliance was the biggest contributor to Nifty gains with 26 points, followed by HDFC and HDFC Bank with 11-16 points. In the broader market, the Nifty Bank index edged 141 points higher to 26,895 and Nifty Midcap index 133 points to 18,646.

Ninety percent gains to the Nifty Bank index were contributed by two banking majors HDFC Bank and ICICI Bank. As market prepares for the earnings season, Raamdeo Agrawal of Motilal Oswal expects overall earnings for April-June quarter to be healthy except PSU banks.

Indusland Bank came under pressure post Q1 earnings, with the stock slipping 2% from highs to close with a fall of 1% at 1,935. The bank was trading at 52-week high ahead of the earnings.

IDBI Bank saw a major surge in the last hour of trade as reports suggest LIC may have to make an open offer for the IDBI Bank deal. LIC may hold 51% stake in IDBI Bank with management control after acquisition.

In the futures market, major traction was seen in the call option of 11,100 with the option adding over three lakh shares with premium surging 92%. Put options of 10,900, 10,800 and 10,700 saw their premium falling 33-35%. Nifty July Futures saw premium narrowing to one point against six points seen on Monday.

On the global front, Asian markets closed higher, taking cues from the rally in US stocks as investors temporarily set aside recent trade-related concerns. In Japan, the Nikkei 225 advanced 0.7% to close off its intraday high at 22,197 points after losing around 100 points in the last minutes of trade.

The index notched its third consecutive close higher. Financials were in positive territory, but the consumer goods sector finished lower. Among heavyweights, Uniqlo-owner Fast Retailing rose 1.7% while robotics and automation manufacturer Fanuc added 1.5%.

South Korea's Kospi rose 0.4% to close at 2,294 as steelmakers recovered some losses seen in the last session. Large cap technology names were mixed, with Samsung Electronics tacking on 1.5%.

Hong Kong's Hang Seng Index erased gains to close flat at 28,682. Mainland indexes dipped below the flat line but finished higher, extending the sharp gains seen on Monday. The benchmark Shanghai composite rose 0.4% to close at 2,827.