The benchmark equity indices on the BSE and National Stock Exchange (NSE) ended around 1.5 per cent higher on Tuesday aided by gains in the shares of banking and financial stocks.
The S&P BSE Sensex rose 519.11 points (1.49 per cent) to end at 35,430.43, while the Nifty 50 settled at 10,471.00, up 159.80 points (1.55 per cent). Both the indices had begun the day with marginal gains and inched higher during the afternoon session of trade.
Bajaj Finance, Larsen & Toubro (L&T), IndusInd Bank, NTPC, Power Grid and Mahindra & Mahindra (M&M) were the top gainers of the day on the Sensex. Only three stocks ended in the red on the BSE benchmark. (see heatmap below)
All the sectoral indices on NSE ended on the positive territory on Tuesday. The Nifty PSU Bank index ended 3.41 per cent higher led by Union Bank of India, The Jammu & Kashmir Bank and Indian Bank. The Nifty Private Bank index too climbed 2.75 per cent aided by Bandhan Bank, IndusInd Bank and The Federal Bank.
Here’s how the sectoral indices performed:
In the broader market, the S&P BSE MidCap index ended at 13,283.47, up 220.80 points (1.69 per cent), while the S&P BSE SmallCap settled at 12,668.18, up 224.23 points (1.80 per cent).
“The Indian indices traded positive, in sync with global indices, seemingly on the back of continued liquidity flows into the markets. The gains were spread across sectors and market caps, with even the IT index overcoming its losses, due to the proposed change in H-1B visa rules. Markets were also optimistic on the back of news of a de-escalation in border hostilities and the pace of Covid-19 recoveries increasing, in spite of the new virus infections. Investors advised to remain cautious and keep booking profits,” Vinod Nair, Head of Research at Geojit Financial Services, said in a statement after the end of markets.
The rupee on Tuesday appreciated 37 paise to provisionally close at 75.66 against the US dollar, following a rally in domestic equity market and persistent foreign fund inflows.
Besides, an unstable US dollar against major global currencies also helped the rupee surge, forex dealers said.
At the interbank foreign exchange market, the rupee opened strong at 75.86. During the session the domestic unit swung between a high of 75.65 and a low of 75.89.
It finally settled at 75.66 against the US dollar, registering a rise of 37 paise over its previous close of 76.03.
World stocks and risk currencies rallied on Tuesday on encouraging global economic data and assurances from US President Donald Trump that the US-China trade deal remained “fully intact” after confusion over its fate had emerged.
Jitters had struck Asian markets after White House adviser Peter Navarro said the trade deal with China was “over”, linking the breakdown in part to anger over Beijing not sounding the alarm earlier about the coronavirus outbreak.
The headlines prompted a brisk selloff but sentiment quickly recovered when Navarro, an outspoken critic of China, said his remarks had been taken out of context, and Trump later confirmed in a tweet the deal was fully in place.
Europe’s equity markets then extended the bounce, climbing between 1-2 per cent as Purchasing Managers’ Indexes (PMIs), seen as a good gauge of economic health, thumped expectations to bolster V-shaped recovery hopes.
Euro zone PMIs recovered to 47.5 from May’s 31.9 and April’s record low of 13.6. The future output index, which had been below the 50 mark that separates growth from contraction for three months, recovered to 55.7 from 46.8 too.
— with rupee input from PTI, global market input from Reuters
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