After a subdued beginning, equity benchmark indices witnessed strong gains around noon on Tuesday following positive global sentiment on hopes of a rate cut by the US Federal Reserve.
Besides, some reports suggested that the government is planning a series of tax alignments for equities in coming weeks in a bid to further boost investor sentiment.
At 12 noon, the BSE S&P Sensex was up by 433 points or 1.1 per cent at 39,683 while the Nifty 50 edged higher by 124 points to 11,751. All sectoral indices at the National Stock Exchange were in the green except for Nifty FMCG. Nifty metal was up by 3.7 per cent, auto up by 3.2 per cent, PSU bank by 1.4 per cent and pharma by 1.3 per cent.
Among stocks, Tata Motors jumped by 13.41 per cent to Rs 167.50 per share. During the one-hour muhurat trading on Sunday evening, it had made a dramatic gain of 17.8 per cent at Rs 149.55 per share despite recently reporting a standalone net loss of Rs 1,282 crore during the second quarter ended September 30.
Metal scrips too showed gains with Tata Steel edging higher by 6.5 per cent, JSW Steel by 5.2 per cent, Vedanta by 4.8 per cent and Hindalco by 2 per cent.
But telecom stocks continued their downward slide after the Supreme Court last week rejected the operators' definition of adjusted gross revenue (AGR). The judgement will negatively impact incumbent cash-strapped operators by over Rs 92,000 crore.
Vodafone Idea plunged by 7.8 per cent, Bharti Infratel by 6.2 per cent and Bharti Airtel by 3.5 per cent.
Meanwhile, Asian shares rose to a three-month peak after Wall Street hit all-time highs a day earlier amid hopes of progress in US-China trade talks.