Shares rose for the third straight session on Tuesday on easing global trade war worries and expectations of additional stimulus supported by a huge dividend from the Reserve Bank of India (RBI).
— CNBC-TV18 (@CNBCTV18Live) August 27, 2019
The BSE benchmark Sensex gained 147 points on Tuesday, led by auto, metal and financial stocks amid positive domestic and global cues, reported PTI.
The 30-share Sensex ended 147.15 points, or 0.39 percent, higher at 37,641.27. It hit an intra-day high of 37,731.51 and low of 37,449.69.
Similarly, the broader NSE Nifty rose 47.50 points, or 0.43 percent, to 11,105.35. During the day, it climbed a peak of 11,141.75 and touched a low of 11,049.50.
Tata Motors was the biggest gainer in the Sensex pack, rallying 8.87 percent, followed by Tata Steel, NTPC, IndusInd Bank, Vedanta and M&M, which gained up to 3.86 percent.
On the other hand, Bharti Airtel, Infosys, TechM, TCS, Kotak Bank, Sun Pharma, HUL and Axis Bank fell up to 3.58 percent.
Investors took note of the Reserve Bank of India's (RBI) decision to transfer record Rs 1.76 lakh crore to the government, which is expected to help improve the liquidity situation in a big way.
Besides, domestic equities have been riding a wave of optimism after the government came out with a stimulus plan to revive the economy.
Domestic equities also followed global stocks, that rallied after US President Donald Trump said China-US trade talks would resume soon, traders said.
“Markets may now consolidate and choose to look at what the government will do with the money,” said Saurabh Jain, assistant vice-president of research at SMC Global Securities in New Delhi.
“It is essential to see where this money will go and which pockets will benefit, given the state of the economy.”
Markets have gained on the back of the government’s move to roll back a recently announced tax surcharge on foreign and domestic equity investors, speed up capital infusion to state-run banks and support the beleaguered domestic auto industry, reported Reuters.
Shanghai Composite Index, Hang Seng, Kospi and Nikkei ended on a positive note. Equities in Europe were trading in the green in their respective early sessions.
The Indian rupee appreciated 32 paise to 71.70 against the US dollar intra-day.
Brent crude futures, the global oil benchmark, rose 0.93 percent to $58.66 per barrel.
— With inputs from agencies
Updated Date: Aug 27, 2019 17:08:01 IST