Domestic stock markets started Tuesday’s session on a positive note, extending gains a day after benchmark Nifty 50 index settled at a three-month peak. The S&P BSE Sensex index rose as much as 0.50 per cent – or 173.99 points – to touch 35,085.31 on the upside in the first few minutes of trade, having started the day up 104.41 points at 35,015.73. The broader Nifty benchmark moved to as high as 10,377.55, after opening stronger at 10,347.95 compared to its previous close of 10,311.20. Buying in financial and metal stocks supported the markets, however selling in select IT stocks limited the gains.
At 9:43 am, the Sensex traded 100.10 points – or 0.29 per cent – higher at 35,011.42, while the Nifty was up 44.45 points – or 0.43 per cent – at 10,355.65.
Market breadth was highly positive, as 1,381 stocks on the BSE traded higher against 510 that moved in the opposite direction.
In the Nifty basket of 50 shares, IndusInd Bank, UPL, Power Grid, Titan, Nestle and JSW Steel, were the top percentage gainers, trading between 1.89 per cent and 4.03 per cent higher.
On the other hand, Bharti Airtel, Reliance Industries, HDFC, TCS and Vedanta, down between 0.23 per cent and 0.62 per cent, were the top Nifty losers.
Equities in other Asian markets see-sawed in a wild ride on Tuesday following confusing statements from the White House over the US-China trade deal, with President Donald Trump later clarifying the pact was “fully intact”.
Mr Trump’s tweet bolstered market sentiment, with Asian shares quickly turning around to the positive territory.
MSCI’s broadest index of Asia Pacific shares outside of Japan was last seen trading 0.70 per cent higher, while Japan’s Nikkei 225 benchmark was up 0.82 per cent.
While China’s Shanghai Composite index was up 0.17 per cent at the time, Hong Kong’s Hang Seng and South Korea’s KOSPI barometers were up 0.87 per cent and 0.51 per cent respectively.
Risk sentiment had taken a knock early in the Asian day after White House trade adviser Peter Navarro said the trade deal with China was “over”, linking the breakdown in part to Washington’s anger over Beijing not sounding the alarm earlier about the coronavirus outbreak.
Asian stocks have rallied hard since hitting a low in March amid worries about the jolt to the global economy from the coronavirus-driven shutdowns. The gains have been driven by hefty central bank stimulus around the globe and gradual easing of restrictions, although worries about a second wave kept investors jittery.
The E-Mini S&P 500 futures were down 0.05 per cent in Asian trade, indicating a flat to negative start for US markets on Tuesday.
Overnight in the US, the Dow Jones Industrial Average index rose 0.59 per cent, the S&P 500 gained 0.65 per cent and the tech-heavy Nasdaq Composite added 1.11 per cent to set a record closing high.