Updated: March 23, 2021 4:14:03 pm
The benchmark equity indices on the BSE and National Stock Exchange (NSE) ended over 0.5 per cent higher on Tuesday led by gains in the banking and financial stocks.
The S&P BSE Sensex rose 280.15 points (0.56 per cent) to reclaim the 50,000-mark and settle at 50,051.44. Likewise, the broader Nifty 50 on NSE also rose 78.35 points (0.53 per cent) to end above the 14,800 level mark at 14,814.75. Both the indices had begun on a positive note and traded mostly positive throughout the session.
HDFC Bank, ICICI Bank, Reliance Industries (RIL) and Axis Bank were among the top contributors to the BSE benchmark on Tuesday.
Among the sectoral indices, the key Nifty Bank index rose 1.73 per cent on Tuesday led by gains in the shares of Bandhan Bank and IDFC First Bank. The Nifty PSU Bank index was the top gainer of the day jumping 2.91 per cent led by Indian Overseas Bank (IOB), Bank of Maharashtra and Bank of India.
The rally in banking and financial stocks was due to the Supreme Court’s announcement on the loan moratorium case. The apex court said that it cannot do a judicial review of Centre’s financial policy decision unless it is malafide, arbitrary. The apex court said that the waiver of complete interest is not possible as it affects depositors.
“Domestic market ended the day on a strong footing supported by a rally in banking stocks amidst weak cues from global markets. Sentiments in the banking stocks were lifted post Supreme Court’s order against granting interest waiver and extension of moratorium period. While its decision to not charge compound interest added a minor concern in the banking space. In the global space, European markets pulled back as rising covid infections reflected lockdown worries,” said Vinod Nair, Head of Research at Geojit Financial Services.
Shares edged down, bond yields eased and the dollar crept up towards recent peaks on Tuesday with markets in a cautious mood ahead of Congressional testimony by Fed Chair Jerome Powell and Treasury Secretary Janet Yellen later in the day.
The STOXX index of 600 European shares was down 0.4 per cent, while the benchmark 10-year German government bond yield dropped 1.9 basis points to -0.3290 per cent as Monday’s plunge in the Turkish lira and lingering concerns over coronavirus infection rates drove investors to safer assets.
In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 0.66 per cent, hurt by a 0.95 per cent fall in Chinese blue chips as a fresh wave of US and European sanctions related to human rights abuses in Xinjiang hit.
Adding to market jitters were further worries over the efficacy of the AstraZeneca Plc vaccine developed with Oxford University after a US health agency said the drugmaker may have included outdated information in its data.
Hong Kong’s Hang Seng Index fell 1.62 per cent and there was a tepid market debut for Baidu, which saw the Chinese tech giant’s shares barely trade above their secondary listing price. Japan’s Nikkei fell 0.61 per cent, but emerging markets in the region performed better.
–global market input from Reuters
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