Recovering some of the previous session’s losses, domestic equity benchmarks Sensex and Nifty opened with major gains on Tuesday. However, after opening higher, both the headline indices slipped into a negative territory. S&P BSE Sensex was trading at 25,910.35, down 70.89 points or 0.27 per cent while the broader Nifty50 index was ruling at 7,595.50, down 14.75 points or 0.19 per cent. “Since last few days we have been mentioning how India VIX has zoomed to elevated levels and till the time it does not cool off, the mayhem is likely to continue. We hope that this health crisis subsides soon for the betterment of mankind and economies. Until then we must give priority to our health rather than wealth,” Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking said.
Sensex, Nifty gained in opening session- S&P BSE Sensex was trading 1454 points or 5.6 per cent higher at 27,435, while the broader Nifty 50 index was ruling above 8,000-mark, up 417 points or 5.48 per cent at 8,027.
What fuelled the rally today- Indian stock markets mirrored the gains in Asian markets which rallied after the US Federal Reserve announced unprecedented measures to support the economy which is reeling from the coronavirus pandemic.
US Fed rolled an array of measures- US Federal Reserve announced an array of measures to boost investor sentiment. “The Fed is now leading from the front with its historic package which includes open-ended purchase of securities, direct loans to companies, purchase of corporate bonds, lending against student loans & credit card loans etc. This comprehensive package for the wall street and the main street is unprecedented and gives the message that the World’s largest central bank will “do whatever it takes” to mitigate the economic crisis, says V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
Investors gain Rs 2.14 lakh crore in opening trade– As Sensex, Nifty jumped in the opening deals, investors wealth gained Rs 2.14 lakh crore as the total market cap of BSE-listed firms rose to Rs 104 lakh crore.
FII and DII data- On Monday, Foreign institutional investors (FIIs) sold shares worth Rs 2,989.29 crore, while domestic institutional investors (DIIs) bought shares of worth Rs 1,082.24 crore on a net basis, According to the data available on the NSE.
Wall Street remained unimpressed- Wall Street’s slide deepened on Monday as fast-spreading coronavirus forced more US states into lockdown. The Dow Jones Industrial Average tumbled 3.04 per cent to end at 18,591.93 points, while the S&P 500 lost 2.93 per cent to 2,237.4. The Nasdaq Composite dropped 0.27 per cent to 6,860.67.