Indian stock markets started on a positive note on Tuesday following a sharp recovery in the US equities with Dow Industrials rebounding over 300 points after subdued activity on Friday last week. The S&P BSE Sensex gained 300.65 points or 0.89% to open at 34,047.43 and NSE Nifty added 61.65 points or 0.6% to begin the day at 10,420.5. Shares of the private sector lender IndusInd Bank surged heavily in the early morning trades after the sixth-largest bank invoked about 6 crore pledged shares (4.32% stake) of Jaypee Infratech. An all-round buying was witnessed in the Indian equities on Tuesday as all of the broader and sectoral indices of National Stock Exchange hovered in green with Nifty Metal, Nifty Pharma, and Nifty PSU Bank surging the most.
The stock of IndusInd Bank advanced as much as 6.12% to a day’s high of 1,790 on BSE followed by the stocks of Sun Pharma (up 1.84%), ICICI Bank (up 1.15%), Yes Bank (up 1.26%), Tata Motors (up 0.99%), Dr Reddy’s (up 1.17%) and Tata Steel (up 2.3%). A healthy recovery was seen in the metal and mining stocks after yesterday’s slump after US president Donald Trump induced fears of a global trade war.
Shares of Axis Bank and Indian Overseas Bank were trading marginally higher even after the Reserve Bank of India had imposed a penalty of Rs 3 crore on Axis Bank for violation of NPA classification norms, and Rs 2 crore on Indian Overseas Bank for not complying with the KYC regulations. The stock of Axis Bank traded up 0.09% at Rs 529.35 and Indian Overseas Bank traded up 0.26% at Rs 19.5.
The stock of the scam-hit PNB was trading little changed on Tuesday, up 1.05% at Rs 101.1 on BSE while the stock of Gitanjali Gems continued to erode value, down 4.92% at Rs 18.35. Shares of Gitanjali Gems had shed nearly 71% in the span of last 14 days.
US stocks rallied on Monday as fears of a global trade war ebbed with investors betting that US President Donald Trump would back down on his threat to impose hefty tariffs on steel and aluminium imports, Reuters said in a report. The Dow Jones Industrial Average rose 336.7 points or 1.37% to 24,874.76, the S&P 500 gained 29.69 points or 1.1% to 2,720.94 and the Nasdaq Composite added 72.84 points or 1% to 7,330.71.