Domestic indices Sensex and Nifty closed on a bullish note on Tuesday, tracking a rally in global equities amid buying pressure in financial stocks. Reversing from yesterday's losses, Sensex ended 376 points higher to 33,605 and Nifty climbed 100 points to 9,914.
In morning trade, Sensex and Nifty took cues from the Asian markets which rallied after US Federal Reserve said it would start purchasing corporate bonds in the secondary market, one of several emergency facilities launched in the wake of the coronavirus pandemic. While Sensex gained up to 794 points to 34,022, Nifty rose 233 points to 10,046.
Commenting on sector-wise rally, Ajit Mishra, VP - Research, Religare Broking," Among the sectors, a mixed trend was witnessed as Banking, IT, Metal and Consumer Durables ended with decent gains while other indices like Oil & Gas, Realty and Telecom ended with losses."
As per market experts, domestic market erased morning gains in mid-day trade as investors turned cautious amid reports of a violent face-off between the India and China on Monday. During de-escalation process underway in the Galwan Valley, three army personnel died in clashes with Chinese forces, said Indian Army today. In a knee jerk reaction to the violent clashses, Sensex lost 275 points to 32,953 and Nifty fell 85 points to 9,728. Later, Sensex and Nifty recovered all losses to end over 1% higher each.
Expressing views over today's trend, S Ranganathan, Head of Research at LKP Securities said, "Dalal Street witnessed significant volatility amid India-China tension in Ladakh. The markets finally managed to recover lost ground helped largely by the HDFC Twins & ICICI Bank in late afternoon trade".
Overseas, Wall Street indices staged a dramatic bounce back and ended higher on the back of Fed's announcement that it would include debt from individual companies to its bond-buying program. This helped in boosting investor sentiment and calming earlier worries about the second wave of coronavirus infections.
Taking cues from the overnight jump in US markets, Asian and European markets were also trading higher. Markets experts suggested Asian investors will focus on Central Bank of Australia's policy minutes and a statement from BoJ.
On Nifty's near term outlook, Angel Broking in its technical report said, "At our end, we still remain hopeful and expect the Nifty not to fall below 9500 now. Before this, 9750-9675 can be seen as intraday supports. On the flipside, 9925-10000 remains to be a sturdy wall and if the index has to regain any strength, it needs to again enter a five-digit territory soon."
On the currency front, Rupee ended weaker at 76.21 per US dollar on Tuesday, over its previous close of 76.03 against the greenback on Monday.
Meanwhile, companies set to announce their earnings are Globus Spirits, Navin Fluorine, Maharashtra Bank, Hindustan Petroleum, NMDC, Schneider among others.