Sensex opened over 150 points higher on Tuesday led by gains in index heavyweights L&T, ICICI Bank, SBI and HDFC Bank amid positive domestic and global cues.
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The 30-share index was trading 123.95 points, or 0.33 percent, up at 37,618.07 at 0930 hours, while the broader Nifty rose 43.45 points, or 0.39 percent, to 11,101.30 in early trade. At 10.15 AM, the Sensex was 163.57 points or 0.44 percent up at 37,657.79 while the Nifty was 61.20 points or 0.55 percent up at 11,119.05.
In the previous session, the BSE barometer closed 792.96 points, or 2.16 percent, higher at 37,494.12; and the Nifty reclaimed the 11,000-level, advancing 228.50 points, or 2.11 per cent, to 11,057.85. Top gainers in the Sensex pack in early trade on Tuesday included Tata Motors, SBI, Tata Steel, L&T, Axis Bank, Bajaj Finance, IndusInd Bank and NTPC, rising up to 2 percent. On the other hand, Infosys was the biggest loser on the index, shedding over 2 percent, after the IT major has bought back 11.05 crore of its shares under its Rs 8,260-crore buyback offer that began in March this year.
HCL Tech, TCS, TechM, Kotak Bank and Asian Paints too fell up to 2 percent. Domestic equities followed global stocks, that rallied after US President Donald Trump said China-US trade talks would resume soon, traders said. Investor sentiment was revived by the government to move to withdraw additional surcharge on foreign investors and initiate measures to revive the economy.
According to Vinod Nair, Head of Research, Geojit Financial Services, the strongest message to the market is that the government is concerned about the slowing economy and intends to support the situation with corrective measures. "The initial set of actions, though small, has enhanced market's sentiment and confidence," he said to PTI, adding that the market will trade in a positive bias awaiting further development regarding additional measures and US-China trade talk. Meanwhile, the Reserve Bank of India (RBI) on Monday approved the transfer of record Rs 1.76 lakh crore dividend and surplus reserves to the government, boosting Prime Minister Narendra Modi-led regime's prospect to stimulate the slowing economy without widening fiscal deficit.
Foreign portfolio investors sold shares worth a net of Rs 752.90 crore on Monday, while domestic institutional investors purchased shares worth Rs 1,272.29 crore, provisional data showed.
The rupee, meanwhile, appreciated 22 paise against its previous close to trade at 71.80 in early session.
Elsewhere in Asia, bourses in Hong Kong, Korea, Shanghai and Japan were trading significantly higher in their respective late morning sessions.
Asian stocks rose in step with their global peers while safe-haven bonds retreated on Tuesday, as signs Sino-U.S. trade hostilities might be easing for now helped restore investor confidence after the previous session’s rout, according to Reuters.
Supporting the market mood, US President Donald Trump on Monday flagged the possibility of a trade deal with China and said he believed Beijing was sincere in its desire to reach an agreement. Global markets had been roiled at the start of the week by new tariffs from the world’s two largest economies.
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.3 percent after dropping 1.3 percent the previous day.
The Shanghai Composite Index advanced 1 percent.
South Korea’s KOSPI added 0.8 percent and Japan’s Nikkei rose 1.1 percent.
Equity markets may have found traction for now but the longer-term outlook for risk assets, buffeted repeatedly by trade concerns, remained shaky.
“There is still a large element of uncertainty regarding the US-China trade dispute. It remains difficult to foresee a resolution, and this will continue to weigh on equity market sentiment,” said Shusuke Yamada, chief Japan FX and equity strategist at Bank Of America Merrill Lynch.
“Apart from the trade war, the equity markets also have to keep an eye on Brexit proceedings, monetary policy of key players such as the European Central Bank and moves in the Chinese yuan.”
China’s onshore yuan nudged down to a fresh 11-year low of 7.1566 per dollar.
Exchanges on Wall Street too ended in the green on Monday.
Global oil benchmark Brent crude was trading 0.53 percent higher at 58.43 per barrel.
Oil prices rose on Tuesday after Trump predicted a trade deal with China after positive comments by Beijing, calming nerves after a round of tit-for-tat tariff hikes had sent markets reeling.
Brent crude was up by 25 cents, or 0.4 percent, at $58.95 a barrel by 0214 GMT, after falling 1 percent in the previous session, dropping for the third day in a row.
US crude was up by 30 cents or 0.6 percent at $53.94 a barrel, having also dropped 1 percent on Monday for the fourth day of declines.
--With inputs from agencies
Updated Date: Aug 27, 2019 10:37:32 IST