Ending seven-day losing streak, domestic equity market benchmarks Sensex and Nifty rose in Tuesday’s trade on speculation that policymakers around the world would ease economic fallout from fast-spreading of COVID-19 ahead of the conference call by G7 finance ministers. Two fresh cases of COVID-19 were confirmed in India, one in Delhi and another in Telangana on Monday. In a separate news report, an Italian national was tested positive for coronavirus in Rajasthan, taking the number of people who have tested positive in the country to six. “Globally, market sentiments would be dictated with the news and update on the spread of Coronavirus cases. A prudent approach for investors at this point would be to stick to quality names and invest in a phased manner,” Ajit Mishra, VP – Research, Religare Broking Ltd said.
What’s driving the Sensex today-
Sensex, Nifty end 7-day losing streak- S&P BSE Sensex jumped 550 points or 1.46 per cent to trade at 38,701, while the broader Nifty 50 index surged to 11,275, gaining 142 points or 1.28 per cent. RIL, ICICI Bank, HDFC and TCS were among the major contributors to the index today.
29 Sensex stocks in green- Except HDFC Bank, all the Sensex stocks were trading in green. Sun Pharma was the top Sensex gainer with a growth of 5.08 per cent, followed by Hero MotoCorp, Tata Steel, RIL, and Bharti Airtel.
Nifty Metal index top gainer- All the 11 Nifty sectoral indices were trading in green with Nifty Metal gaining the most, followed by Nifty Media and Nifty Pharma, up over 3 per cent each. The Nifty Bank index too jumped 350 points led by gains in RBL Bank, Yes Bank, IDFC First Bank and Federal Bank.
Global markets rally– Global shares extended their rebound in Tuesday’s session. Japan’s Nikkei jumped 1.6 per cent while MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.8 per cent. South Korea’s Kospi added 2.4 per cent and Australian shares advanced 1.8 per cent. On Wall Street, 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.
G7 support- G7 finance ministers are also expected to hold a conference call on Tuesday, sources said, to discuss measures to deal with the economic impact of the coronavirus outbreak. Coronavirus is now spreading much more rapidly outside China than within the country, leading the world into uncharted territory, although the World Health Organization (WHO) has so far stopped short of calling it a pandemic, as per the Reuters news report.
Three new coronavirus cases in India- Along with two new coronavirus cases in India, an Italian national tested positive for coronavirus in Rajasthan, taking the number of people who have tested positive in the country to six.