Sensex surges 560 points on hopes of central bank stimulus; Nifty tops 11,250

Sensex surges 560 points on hopes of central bank stimulus; Nifty tops 11,250

Expectation of relief measures from major world economies soothed the wounds of the bulls on Dalal Street, leading to a gap-up start for domestic equity indices on Tuesday.

Speculations are mounting that policymakers around the world would move to ease the economic fallout from the spreading coronavirus, ahead of a conference call by Group of Seven heads. Finance ministers from the group are expected to hold a conference call today.

BSE flagship Sensex was up 560 points to 38,705 while NSE benchmark Nifty gained 154 points to 11,286. Broader market indices were faring better with Nifty Smallcap adding 1.56 per cent to 5,694 while Nifty Midcap advanced 1.62 per cent to 16,942. Nifty 500 was up 1.44 per cent to 9,311.

India VIX, the measure of volatility in the market, fell 8.01 per cent to 23.18.

All sectoral indices on NSE were trading with gains. Nifty Metal was the biggest gainer, up 2.60 per cent to 2,254 thanks to gains in Jindal Steel, JSW Steel and Welspun Corp, which rose more than 3 per cent. Nifty Media also gained over 2 per cent. Among other major gainers were Nifty IT, Nifty PSU Bank and Nifty Pharma.

In the 30-share pack Sensex, market breadth was heavily in favour of advances with just one stock in red—Powergrid that dipped 0.73 per cent to Rs 182.70.

Sun Pharma was the biggest gainer, up 3.62 per cent at Rs 382.20. Tata Steel, HCL Tech, Reliance Industries, ICICI Bank and TCS, each gained more than 2 per cent.

Shares of Max Financial gained 8.97 percent to Rs 562.75 after reports said Axis Bank is set to acquire more than 20 per cent stake in Max Life Insurance through fresh issue of equity.

Globally, the improved mood supported US S&P 500 futures, which rose 0.3 per cent in early Asian trade on Tuesday, a day after the S&P 500 gained 4.60 per cent, the biggest gain since December 2018.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.0 per cent.

South Korea’s Kospi added 1.3 per cent and Australian shares advanced 1.6 per cent ahead of an expected rate cut by the Reserve Bank of Australia.

Japan’s Nikkei lost steam after short-covering ran its course, trading almost flat having given up earlier gains of 1.8 per cent.