Sensex Sweeps 376 Points in Consistency with Global Assembly

Equity benchmark Sensex surges 376 points in line with a global rally on Tuesday, led by index heavyweights HDFC twins, ICICI Bank and Infosys amid strong cues from global equities. The 30-share index, however, briefly turned negative in afternoon session after an escalation in India-China border tension, but managed to recoup losses and settled 376.42 points, or 1.13% higher at 33,605.22. Similarly the NSE Nifty closed 100.30 points or 1.02% up at 9,914.

HDFC Bank was the top gainer in the Sensex pack, jumping around 4%, followed by HDFC, ICICI Bank, Infosys, Hero MotoCorp, and Kotak Bank. On the other hand, IndusInd Bank, Axis Bank, Tech Mahindra, and ITC were among the laggards.

Moreover, Dalal Street was enthused by positive cues from global markets after the US Federal Reserve launched a massive programme to support Main street businesses hit by the coronavirus lockdown, according to traders. The Fed announced its Main Street Lending Program and an emergency lifeline under which it will buy up to USD 750 billion in corporate bonds.

The plan is part of a massive financial backstop put in place by the bank to protect the economy from the worst of the virus crisis.

Bourses in Shanghai, Hong Kong, Tokyo, and Seoul ended up to 5% higher. Also, the Stock Exchange in Europe too opened with significant gains.

However, the massive escalation of border tension in the sensitive Galwan Valley in eastern Ladakh dampened domestic investor sentiment. In the first such incident in the last 45 years reflecting massive escalation in the five-week border row, an Indian Army officer and two soldiers were killed during a violent confrontation with Chinese troops in the Galwan Valley.

Meanwhile, the rupee pared initial gains and closed 17 paise lower at 76.20 against the U.S. Dollar

Lastly, the international oil benchmark Brent crude futures rose 1.41% to $40.28 per barrel.