Sensex rises 114.19 points to end at 35,378.60; Nifty closes beyond 10,600 mark

The benchamrk BSE index closed in green at 35,378.60 with a rise of 114.19 points. Nifty too ended on higher note to close at 10,699.90 mark. The gains were mainly led by IT, pharma and auto shares. 

The Sensex made a smart recovery by rising 150 points to 35,415.03 in afternoon trade on sustained buying by domestic institutional investors and mixed Asian cues.

Sustained buying by domestic institutional investors and retailers mainly helped the key indices to recover from initial losses, broker said.Prominent gainers included ONGC, Sun Pharma, Hero Motocorp, RIL, Tata Motors, Axis Bank, Bajaj Auto, TCS, Infosys, HUL, Bharti Airtel and Yes Bank, rising up to 2.60 per cent.On the other hand, stocks of metal, power and capital goods and sectors traded lower by falling up to 0.38 per cent.

World stocks rose on Tuesday, supported by gains in Europe and three straight days of tech-driven rises in the United States, even though markets across Asia and especially China remained in the grip of trade turbulence.

Wall Street was set for another firmer session as investors positioned for strong Silicon Valley earnings before the reporting season starts next week, while European shares also rose after a deal on settling a migration policy row that had threatened Germany's coalition government.

But a July 6 deadline is looming for Washington to impose tariffs on $34 billion worth of Chinese goods that Beijing has vowed to match with tariffs on US products. President Donald Trump also threatened on Monday to "do something" if the United States was not better treated by the World Trade Organisation.

The trade row between the United States and major economies has rattled financial markets over several weeks, with no sign U.S. President Donald Trump is about to back down from his 'America First' protectionism policies that many fear will harm the global economy.

The European stock futures point to gains of 0.3 percent in France's CAC and Britain's FTSE and 0.5 percent in Germany's DAX.

The Asia Pacific MSCI index ex-Japan tumbled as much as 1.4 percent to its lowest since September 29, before cutting some of the losses to be down 0.5 percent. Japan's Nikkei average also recovered from a 0.9 percent fall and was last off 0.1 percent to a near three-month closing low.

Chinese stocks were hit the hardest, with Hong Kong's Hang Seng index diving as much as 3.3 percent to its lowest level in ten months, while the Shanghai Composite Index shed as much as 1.9 percent to hit a fresh 28 month low. The Hong Kong market remained choppy and was last down 1.9 percent, while the Shanghai bourse edged up 0.05 percent.

"It's not clear yet if the trade row will derail the global economy as a whole but it's already clear that it will harm Chinese companies at least," said Ayako Sera, market strategist at Sumitomo Mitsui Trust Bank.

"That is why we've seen Chinese yuan and Chinese stocks have suffered selloffs. I think this will continue at least until the July 6 deadline."