NEW DELHI: The bulls showed who is in-charge today with a spectacular comeback, lifting the stock benchmarks by over 1 per cent.
Buying picked up only during the final hours of the session.
Today's show was driven by RIL and financial stocks, which were the major contributors.
The strength reflected optimism in most Asian markets that traded with strong gains as US 10-year Treasury yields edged up, following two days of fall.
A strengthening rupee amid firm FII flows helped cement the sentiment further.
The Sensex closed at 38,233, up 425 points, or 1.12 per cent. In the 30-share index, only seven constituents ended in the red. The broader Nifty went up 129 points, or 1.14 per cent, to settle at 11,483.
Domestic indices on Monday dropped because of recession fears in the world's biggest economy — the US — and global growth slowdown.
Market bulletin
Among Sensex stocks, SBI with gains of 3.23 per cent was the best performing stock. NTPC, Vedanta, RIL, ICICI Bank and Bajaj Finance too recorded strong gains. Infosys, on the other hand, declined the most at 1.23 per cent. Bajaj Auto, ITC, L&T, Coal India and TCS too joined the loser brigade.
The midcap and smallcap indices joined the benchmark Sensex in its bull rally. The BSE Midcap index rose 1.09 per cent and BSE Smallcap logged gains of 0.66 per cent.
In the sectoral space, barring IT and teck, all other indices ended in the pool of green with bankex leading the charge. Energy, power and utilities were among other indices that saw value buying.
The factors: A fact-check
Firm global cues: Most of the Asian counterparts ended the day in green with Nikkei 225 rallying 451.28 points, or 2.15 per cent to 21,428.39. Taiwan Weighted advanced 79.72 points, or 0.76 per cent, to 10,559.20, Jakarta Composite jumped 57.19 points, or 0.89 per cent, to 6,468.44 and Straits Times 15.47 points, or 0.49 per cent, to 3,198.39. On the other hand, Shanghai index slipped over 1 per cent.
Asian shares drifted higher on Tuesday after two days of losses as US 10-year Treasury yields edged up, but the outlook remained murky as investors weighed the odds of whether the US economy is in danger of slipping into recession, according to Reuters.
Liquidity position comfortable: Market sentiment also got some boost after the finance ministry and the Reserve Bank of India (RBI) on Monday said liquidity situation of the economy is comfortable and it will be further increase by Rs 35,000 crore through the rupee-dollar swap window.
Strengthening rupee: Appreciating rupee further boosted market sentiment on Dalal Street in Tuesdays trade. The local currency strengthened by 15 paise to 68.81 against the US dollar intraday on fresh selling of the greenback by exporters.
Possibility of rate cut by US? Global market tanked sharply on Monday after 10-year US bond yield fell below 3-month bond yields, reflecting an inverted yield curve, which is seen as harbinger for recession. Former US Federal Reserve chair Janet Yellen said the US Treasury yield curve mayRead More – Source
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