On Tuesday, Domestic stock markets opened lower but soon recovered the losses tracking strength in global peers. The Sensex rose as much as 70 points to touch 36,653 in the first few minutes of trade, while the Nifty went up 16 points to 10,928. Top gainers on the 50-scrip index were Dr Reddy's Laboratories, Hero MotoCorp, Mahindra & Mahindra, UPL and Bajaj Finance, trading between 1.1 per cent and 1.8 per cent higher. However, some nervousness prevailed among investors as the markets awaited the outcome of the Reserve Bank of India's monetary policy meeting due later this week.
However Asian stocks extended their gains on Tuesday as overnight strength on Wall Street and the Federal Reserve's dovish turn underpinned risk appetite, while the dollar held firm on last week's upbeat US data. Also MSCI's broadest index of Asia-Pacific shares outside Japan advanced 0.4 per cent and hovered near its four-month high marked on Friday. Japan's Nikkei average was flat on the day but at its highest level in seven weeks.
MSCI's gauge of stocks across the globe reached a two-month high, having risen more than 13 per cent from its near two-year low late in December, helped by the Fed's change of tack.