Snapping its seven-day falling streak, BSE Sensex rallied 480 points on Tuesday in line with gains in global stocks after central banks assured of policy measures to mitigate the economic impact of the coronavirus outbreak.

After a highly volatile session, the 30-share benchmark index surged 479.68 points, or 1.26 per cent, to end at 38623.70 with 28 of its constituents ending in green.

The broader NSE Nifty jumped 170.55 points, or 1.53 per cent, to close at 11303.30 led by gains in metal and pharma stocks.

Among the Sensex stocks, Sun Pharma rose the most by 6.64 per cent amid export restrictions imposed by the government on 26 pharma ingredients and medicines to boost local supplies.

Tata Steel, ONGC, UltraTech Cement, NTPC, PowerGrid, Reliance, Kotak Bank and HCL Tech were among the major gainers. On the other hand, ITC and HDFC Bank ended in the red.

Domestic market sentiment got a boost after the Reserve Bank of India (RBI) said it was ready to take necessary action to ensure orderly functioning of financial markets.

Meanwhile, a report by Motilal Oswal Institutional Equities said that even as the six-sigma event — coronavirus outbreak — has both economic and political implications, the exact nature and quantum of the same are difficult to forecast.

“Global growth and trade might deteriorate further if the current situation persists or escalates further. Although India is predominantly a domestic consumption-driven economy, its trade inter-linkages with the world and integrated supply chains in several sectors bring in an element of risk.

“In fact, this event has introduced additional downside risks to our earnings estimates for 2020-21. Till we see a semblance of normalcy returning to the global economy and markets, the Indian markets are likely to track global movements and stay narrow,’’ the report said.