Bouncing back from the seven-day losing streak, domestic equity market benchmarks Sensex and Nifty ended over a per cent higher on Tuesday supported by positive global cues and hopes of stimulus to mitigate the economic impact of the coronavirus outbreak. S&P BSE Sensex ended 480 points or 1.26 per cent higher at 38, 623 points, while the broader Nifty 50 index reclaimed 11,300 level, gaining 170 points or 1.53 per cent. “Comments by central bank officials over possible policy initiatives to curtail economic impact held markets positive across the globe. With nations across the globe taking precautions over the virus, further long-term economic impact looks minimal,” Vinod Nair, Head of Research at Geojit Financial Services said.
Top factors from today’s trade-
Top Sensex gainers and losers- Among Sensex stocks, Sun Pharma was the top Sensex gainer with a growth of 6.64 per cent, followed by Tata Steel and ONGC. On the flip side, ITC and HDFC Bank were the only laggards on the Sensex. RIL, ICICI Bank, Kotak Bank and TCS were among the major contributors to the index today.
All sectoral indices end in green- All the Nifty sectoral indices settled higher with Nifty Metal gaining the most, followed by Nifty Pharma up over 5 per cent and Nifty Media gaining over 3 per cent in the trade today.
RBI calms nerves of financial markets- RBI on Tuesday calmed nerves of the panic-hit market after a fresh rise in coronavirus cases which were confirmed by the Indian government. “The Reserve Bank of India is monitoring global and domestic developments closely and continuously and stands ready to take appropriate actions to ensure the orderly functioning of financial markets, maintain market confidence and preserve financial stability”, the RBI said in a note.
Global markets rally- On Wall Street, the Dow Jones Industrial Average surged over 5 per cent while the S&P 500 and Nasdaq each jumped more than 4 per cent in a major rebound. The Dow Jones Industrial Average jumped 5.09 per cent to end at 26,703.32 points, while the S&P 500 surged 4.60 per cent to 3,090.23. The Nasdaq Composite added 4.49 per cent to 8,952.17.
Technical observation- “After showing high volatility on Monday, Nifty shifted into a sharp upside bounce today and closed the day on hefty gains. A long positive candle was formed today, which is placed within a long-range negative candle of Monday. Technically, this pattern indicates an inside-day type candle formation. Normally, a formation of inside day at the reasonable lows/supports could indicate a near term bottom reversal (after the confirmation),” Nagaraj Shetti – Technical Analyst, HDFC securities said.
G7 conference call- As the widening epidemic stokes fears of a global recession, finance ministers and central bank governors of the G7 major economies will issue a statement after their conference call scheduled on Tuesday. In the statement, G7 countries will pledge to work together to mitigate the damage to their economies from the fast-spreading epidemic, as per the Reuters news report.
Rupee slides against US dollar- The Indian rupee slipped to 73.20 a dollar to hit a 52-week low on Tuesday. It opened at 72.47 a dollar against the previous close of 72.73 a dollar.