Sensex,Nifty spurt; biggest one-day percentage gain since May 2009
Investor wealth on Tuesday jumped Rs 7,71,377 crore as markets bounced back after two days of fall, tracking a broad-based rally in global equities.Market breadth was in favour of advances as out of 2,576 companies traded on the BSE, 1,842 advanced and 540 declined while 194 securities remained unchanged.Fear guage India VIX continued to decline and hit a month low of 52.06, down around 6 per cent.
Indian shares recorded their biggest single-day gain in over a decade on Tuesday on signs of progress against the coronavirus pandemic around the world, while pharma stocks gained as the government partially lifted export restrictions on some drugs.
Investor wealth on Tuesday jumped Rs 7,71,377 crore as markets bounced back after two days of fall, tracking a broad-based rally in global equities.
The broader NSE Nifty 50 index ended 8.76% up at 8,792.20 while the benchmark S&P BSE Sensex was 8.97% higher at 30,067.21. Both the indexes posted their best intraday rise since May 2009.
Market breadth was in favour of advances as out of 2,576 companies traded on the BSE, 1,842 advanced and 540 declined while 194 securities remained unchanged.Fear guage India VIX continued to decline and hit a month low of 52.06, down around 6 per cent.
Global markets rose for a second day and added to the cheer in domestic equities, as investors saw signs of progress against the coronavirus in both Europe and the United States.
In hardest-hit Italy and Spain, authorities have started looking ahead to easing lockdowns after steady falls in fatality rates, while the daily number of deaths in the United States’ worst-affected area, New York, has also shown signs of steadying.
Meanwhile, India said it will allow limited exports of the anti-malaria drug hydroxychloroquine that U.S. President Donald Trump has touted as a potential weapon in the fight against the coronavirus.
The move boosted the Nifty pharma index as much as 10.8%, its biggest percentage gain since January 2011. Generic drugmaker Dr Reddy’s Laboratories Ltd rose nearly 13.5%.
However, Indusind Bank was the day’s top blue-chip gainer, rising as much as 25% followed by Axis Bank, which advanced about 19.48%. The Nifty banking index jumped about 10.51%.
There were no laggards on the blue-chip index at close.
Asian stock markets rallied for a second day on Tuesday and riskier currencies rose, on tentative signs the coronavirus crisis may be levelling off in New York and receding in Europe. Japan’s Nikkei rose 2 per cent and has erased most of last week’s losses. MSCI’s broadest index of Asia-Pacific shares outside Japan pared early gains, but rose 1.4 per cent.
European shares, too, rallied for a second straight day.
In commodities, oil rose amid hope that the world’s biggest producers of crude will agree to cut output as the coronavirus pandemic crushes demand, even as analysts warn a global recession may be deeper than expected and big production cuts will be needed.