Sensex surges over 170 points, Nifty regains 12,000-mark amid strong recovery in global markets; RIL, HDFC Bank among top gainers

  • The 30-share BSE index was trading 178.66 points or 0.44% higher at 40,968.04, and NSE advanced 46.95 points, or 0.39%, to 12,026.60 at around 10 am

  • On a net basis, FIIs bought equities worth Rs 366.21 crore, while domestic institutional investors purchased shares worth Rs 601.86 crore on Tuesday

  • ITC, Infosys, Hero MotoCorp, Asian Paints, Titan, UltraTech Cement and HDFC were trading in the red

Equity benchmark indices gained considerably during early trading on Wednesday tracking gains in index-heavyweights Reliance Industries, HDFC Bank and Axis Bank amid firm recovery in global equities.

Market benchmark Sensex jumped 150 points in the opening session while Nifty regained 12,000-mark in the early hours.

The 30-share BSE index was trading 178.66 points or 0.44 percent higher at 40,968.04, and the broader NSE advanced 46.95 points, or 0.39 percent, to 12,026.60 at around 10 am.

In the previous session, Sensex closed at 40,789.38, up 2.30 percent or 917.07 points. This was the biggest single-day rise for the Sensex since 23 September 2019. Likewise, Nifty settled at 11,979.65, surging 2.32 percent or 271.75 points.

 Sensex surges over 170 points, Nifty regains 12,000-mark amid strong recovery in global markets; RIL, HDFC Bank among top gainers

Representative image. Reuters

Meanwhile, investors awaited the outcome of Reserve Bank of India's six-member Monetary Policy Committee (MPC) meet to see if it will cut key interest rates again a day later after keeping status quo in the previous policy.

On a net basis, foreign institutional investors bought equities worth Rs 366.21 crore, while domestic institutional investors purchased shares worth Rs 601.86 crore on Tuesday, data available with stock exchanges showed.

Mahindra and Mahindra, Bajaj Auto, Bharti Airtel, HCL Tech and L&T were among the top gainers in the Sensex pack.

While ITC, Infosys, Hero MotoCorp, Asian Paints, Titan, UltraTech Cement and HDFC were trading in the red.

Most sectoral indices at the National Stock Exchange (NSE) were in the green with Nifty realty up by 1.7 percent and auto by nearly 1 percent.

Among stocks, Tata Motors accelerated by 4.4 percent at Rs 173.05 per share while Mahindra and Mahindra was up by 1.8 percent and Bajaj Auto by 1.6 percent.

Reliance Industries continued its Tuesday's pace and was up by 1.3 percent at Rs 1,444.55 per share.

According to analysts, markets were trading in the positive territory on the back of encouraging data points related to the domestic economy.

Rupee rises 8 paise to 71.17

The rupee appreciated by 8 paise to 71.17 against the US dollar in early trade on Wednesday tracking gains in domestic equity market and fresh foreign fund inflows.

Forex traders said rupee is trading in a narrow range as market participants are awaiting cues from the Reserve Bank of India's monetary policy outcome. Moreover, RBI's commentary on inflation and growth forecast will be followed closely by the investors, they said.

Asian shares up as China stocks edge higher

Asian stocks steadied on Wednesday as Chinese stocks nudged higher on hopes of additional stimulus to lessen the economic impact of a coronavirus outbreak, but risks remain as the illness continues to spread and the death toll neared.

MSCI’s broadest index of Asia-Pacific shares outside Japan MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.36 percent. Shares in China rose 0.5 percent while stocks in Hong Kong climbed 0.42 percent in early trading.

The onshore yuan was little changed versus the dollar, highlighting the cautious mood as investors monitor the impact of the virus. The safe-haven yen and Swiss franc nursed losses versus the dollar.

Oil prices bounced in Asia on hopes for more output cuts from OPEC and its allies but sentiment remained weak on worries about a long-term dent in demand for energy and other commodities.

China and other countries have imposed travel restrictions to try to contain a new virus that emerged in the central Chinese city of Wuhan late last year, slamming the breaks on manufacturing and tourism in the world’s second-largest economy.

Many investors argue that any slowdown will be temporary and that Chinese policy steps are reason to remain optimistic about the growth outlook, but so far public health officials have not found a way to stop the spread of the virus both inside and outside of China.

“We’re going to have a strong day in Asia, but whether this is the reversal of a downtrend remains to be seen,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“Oil investors remain pessimistic about demand disruptions, but equity investors, especially overseas, are discounting the impact of the virus.”

Australian shares were up 0.37 percent, buoyed by gains in the mining sector. Japan's Nikkei stock index rose 0.99 percent, supported by shares of industrial equipment makers. US stock futures fell 0.23 percent in Asia on Wednesday. The S&P 500 rose 1.5 percent on Tuesday and the tech-heavy Nasdaq rose to a record high.

The People’s Bank of China is likely to lower its key lending rate—the loan prime rate—on 20 February, and cut banks’ reserve requirement ratios in the coming weeks, policy sources told Reuters.

The PBOC has already pumped hundreds of billions of dollars into the financial system this week. This helped Chinese stocks stabilise on Tuesday following a rout that wiped out around $700 billion in market capitalisation on Monday when Chinese markets opened after an extended holiday.

The virus has already claimed nearly 500 lives. Japan’s health minister said on Wednesday 10 people on a cruise ship at the port of Yokohama have tested positive for the new virus. In the onshore market, the yuan held steady at 6.9970 per dollar after rising 0.3 percent on Tuesday.

The yen traded at 109.48 per dollar, close to the lowest in almost a week. The Swiss franc held steady at 0.9696 versus the dollar following a 0.3 percent decline on Tuesday.

Benchmark 10-year Treasury yields edged up to 1.6026 percent in a sign of receding concern about the coronavirus. US crude ticked up 1.27 percent to $50.24 a barrel, and Brent crude rose to 0.74 percent to $54.63 per barrel in recovery from declines on Tuesday.

OPEC and its allies are considering cutting oil output by a further 500,000 barrels per day (bpd) due to the impact on oil demand from the coronavirus, sources tell Reuters.

Brent futures have lost around 16 percent since China confirmed on Jan. 21 that human-to-human infection of the previously unknown virus is possible, which kicked of a rout in global markets as the number of cases and the death toll rose.was up 0.36 percent. Shares in China rose 0.5 percent while stocks in Hong Kong climbed 0.42 percent in early trading.

The onshore yuan was little changed versus the dollar, highlighting the cautious mood as investors monitor the impact of the virus. The safe-haven yen and Swiss franc nursed losses versus the dollar.

Oil prices bounced in Asia on hopes for more output cuts from OPEC and its allies but sentiment remained weak on worries about a long-term dent in demand for energy and other commodities.

China and other countries have imposed travel restrictions to try to contain a new virus that emerged in the central Chinese city of Wuhan late last year, slamming the breaks on manufacturing and tourism in the world’s second-largest economy.

Many investors argue that any slowdown will be temporary and that Chinese policy steps are reason to remain optimistic about the growth outlook, but so far public health officials have not found a way to stop the spread of the virus both inside and outside of China.

“We’re going to have a strong day in Asia, but whether this is the reversal of a downtrend remains to be seen,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“Oil investors remain pessimistic about demand disruptions, but equity investors, especially overseas, are discounting the impact of the virus.”

Australian shares were up 0.37 percent, buoyed by gains in the mining sector.

Japan's Nikkei stock index rose 0.99 percent, supported by shares of industrial equipment makers. US stock futures fell 0.23 percent in Asia on Wednesday.

The S&P 500 rose 1.5 percent on Tuesday and the tech-heavy Nasdaq rose to a record high.

The People’s Bank of China (PBOC) is likely to lower its key lending rate—the loan prime rate—on 20 February, and cut banks’ reserve requirement ratios in the coming weeks, policy sources told Reuters.

The PBOC has already pumped hundreds of billions of dollars into the financial system this week. This helped Chinese stocks stabilise on Tuesday following a rout that wiped out around $700 billion in market capitalisation on Monday when Chinese markets opened after an extended holiday.

The virus has already claimed nearly 500 lives. Japan’s health minister said on Wednesday 10 people on a cruise ship at the port of Yokohama have tested positive for the new virus.

In the onshore market, the yuan held steady at 6.9970 per dollar after rising 0.3 percent on Tuesday.

The yen traded at 109.48 per dollar, close to the lowest in almost a week. The Swiss franc held steady at 0.9696 versus the dollar following a 0.3 percent decline on Tuesday.

Benchmark 10-year Treasury yields edged up to 1.6026 percent in a sign of receding concern about the coronavirus.

US crude ticked up 1.27 percent to $50.24 a barrel, and Brent crude rose to 0.74 percent to $54.63 per barrel in recovery from declines on Tuesday.

OPEC and its allies are considering cutting oil output by a further 500,000 barrels per day (bpd) due to the impact on oil demand from the coronavirus, sources tell Reuters.

Brent futures have lost around 16 percent since China confirmed on 21 January that human-to-human infection of the previously unknown virus is possible, which kicked of a rout in global markets as the number of cases and the death toll rose.

With inputs from agencies

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Updated Date: Feb 05, 2020 10:40:41 IST