Mumbai: BSE Sensex Tuesday rose for the second straight session to close over 132 points higher and NSE Nifty reclaimed the crucial 8,500-level, enthused by revived global sentiments following improved prospects of Hillary Clinton's win in today's US election.
The sentiment-driven rally also got support from stock specific earning results and Finance Minister Arun Jaitley's statement that the Centre will step up reforms to attract more investment and fill up infrastructure deficit.
However, the momentum turned range-bound with investors being cautiously optimistic about the US poll outcome, while a fag-end buying saw key indices recovering from the day's low.
Anand James, Chief Market Strategist, Geojit BNP Paribas Financial Services Ltd, said, "Despite benchmark indices surging in the closing hours, markets wore a jaded look, with market breadth also declining after a firm opening. While improved chances of Hillary in the US elections, has upped the risk appetite, sectoral moves await key changes and IT, pharma sectors which have seen a lot of turbulence lately, remain cautious."
The 30-share Sensex after shuttling between 27,646.84 and 27,406.76, settled 132.15 points, or 0.48 per cent higher, at 27,591.14. The gauge had gained 184.84 points yesterday. The NSE Nifty ended 46.50 points, or 0.55 per cent, higher at 8,543.55 after moving between 8,559.40 and 8,480.10.
In the broader markets, mid-cap index also rose by 0.36 per cent while small-cap index gained 0.16 per cent. Buying was led by auto, industrials, oil & gas, banks, financials and utilities -- supported by second-line shares of mid-cap and small-cap industries. While selling was seen in healthcare, FMCG and realty counters.
Globally, most Asian markets extended gains on hopes Hillary Clinton will beat Donald Trump in Tuesday's presidential election but traders are cautious, with many opinion polls saying the race is too close to call.
Hong Kong's Hang Seng gained 0.47 per cent, while Shanghai Composite Index rose 0.46 per cent. Japan's Nikkei, however, ended almost flat.
European markets were cautious in their opening deals with London's FTSE edging higher by 0.10 per cent, while Frankfurt's DAX 30 up 0.05 per cent. Paris CAC 40 up 0.15 per cent.