RTTNews - After falling over 1.3% in mid-session, the Indian market recovered sharply to finish modestly higher on Tuesday, helped by higher U.S. stock futures and short covering ahead of the settlement of current month derivative contracts on Thursday.

While IT, consumer durable, oil/gas and healthcare stocks showed notable gains, banking and public sector stocks ended on a subdued note. The benchmark BSE Sensex, which fell to a low of 15,423 in the afternoon, recovered to finish at 15,688, up 60 points or 0.38% from its previous close.

Likewise, the S&P CNX Nifty rose 17 points or 0.36% to 4,659, the BSE mid-cap index moved up 0.58% and the small-cap index advanced 1.50%, outperforming large-caps.

The market breadth on the BSE was fairly positive, as gainers outnumbered losers by 1677 to 1064, with 75 stocks closing unchanged.

Among the top gainers, Tata Motors surged up 7.10%, Wipro advanced 3.86%, Reliance Industries gained 2.51%, Reliance Communication added 2.22%, Grasim Industries rose 2.04% and NTPC ended up 1.69%.

TCS, Larsen & Toubro, Infosys, Reliance Infrastructure, ITC, Sun Pharma and Sterlite Industries were the other major prominent gainers.

However, SBI fell 2.36%, BHEL eased 1.76%, ICICI Bank ended down 1.07% and ONGC fell 1%.

Maruti Suzuki, Hindalco, Tata Power, Jaiprakash Associates, Hero Honda Motors, DLF, ACC, Mahindra & Mahindra, HDFC and Tata Steel also ended in the red.

Bharti Airtel Chairman Sunil Mittal on Monday reportedly met Finance Minister Pranab Mukherjee and Minister of Corporate Affairs Salman Khursheed to brief them about the contours of a proposed merger deal with South Africa's MTN. The stock ended down 1.62%.

Puravankara Projects rose 1.44% on reports that it is in talks for an alliance with Mexican company Homex for affordable housing. Lanco Infratech edged up 0.55% on reports it may acquire a thermal coal mine in South Sumatra for $80-90 million.

Suven Life Sciences was locked at the 20% upper circuit limit on saying that it was in talks with four global pharmaceutical firms for outlicensing its Alzheimer's molecule.

HCL Technologies rallied nearly 6% after reporting a standalone net profit of Rs 192.94 crore for the June quarter as against a net loss of Rs 13.54 crore in the corresponding quarter last year.

IT stocks closed mostly higher on reports that they are pursuing several outsourcing contracts worth $1 billion from the postal department. On the other hand, sugar stocks fell after the government decided to limit sugar stocks with bulk buyers.

Maruti Suzuki India slipped 0.95% after it launched a new version of its small car Estilo. Stone India hit the 5% upper circuit limit on receiving the first bulk order for supply of Air Spring for passenger coaches from Rashtriya Coach Factory, Kapurthala, for 123 coach sets.

Piramal Life Sciences advanced over 4% on announcing the completion of phase I study of a new, orally active glucose-lowering compound, P1736 in The Netherlands. Essar Oil gained 3.42% amid reports that it could set up a trading desk in Singapore to help export oil products from its refinery.

ABB India rose nearly 2% on bagging an order worth Rs. 128.3 crore from Power Grid Corporation of India. Punjab National Bank fell 1.27% after it proposed to raise Rs 500 crore through the issue of perpetual bonds to meet its business growth and capital requirements. Aventis Pharma rose 2.47% on the back of a block deal executed on the BSE.

Elsewhere, the other Asian markets ended mostly lower despite some intra-day recovery and the European markets retreated from the 10-month highs they hit in the previous session, while U.S. stock futures point towards a positive opening on Wall Street Tuesday morning ahead of the release of crucial economic reports on housing prices and consumer confidence.

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