Sensex and Nifty rally 4% after positive cues from global markets

• The 30-share BSE barometer was trading 1,127.57 points or 4.09 % higher at 28,718.52.
  
• The NSE Nifty soared 347.95 points, or 4.30%, to 8,431.75.
  
• US stocks surged with all three major averages closing up more than 7%, after a setback in the previous week amid the COVID-19 pandemic.
  

Equity benchmark Sensex rallied over 1,300 points in early trade on Tuesday led gains in bank, IT and auto stocks amid recovery in global equities. After hitting a high of 28,963.25, the 30-share BSE barometer was trading 1,127.57 points or 4.09 % higher at 28,718.52.

Similarly, the NSE Nifty soared 347.95 points, or 4.30%, to 8,431.75.

IndusInd Bank was the top gainer in the Sensex pack, surging up to 15%, followed by Mahindra and Mahindra, HCL Tech, ICICI Bank, Axis Bank and Infosys.

On the other hand, Bajaj Finance was the sole loser.

In the previous session on Friday, the 30-share BSE barometer ended 674.36 points or 2.39% lower at 27,590.95 and the NSE Nifty shed 170 points, or 2.06%, to finish at 8,083.80.

Foreign institutional investors (FIIs) were net sellers in the capital market, as they offloaded equity shares worth Rs 1,960.97 crore, according to provisional exchange data.

Market was closed on Monday on account of 'Mahavir Jayanti'.

Despite concerns over rising coronavirus cases in the country, domestic equities took positive cues from global stocks and turned positive, traders said.

Global Cues

US stocks surged with all three major averages closing up more than 7%, after a setback in the previous week amid the COVID-19 pandemic.

On Monday, the Dow Jones Industrial Average soared 1627.46 points, or 7.73%, to 22,679.99. The S&P 500 increased 175.03 points, or 7.03%, to 2,663.68. The Nasdaq Composite Index jumped 540.15 points, or 7.33%, to 7,913.24.

All 11 primary S&P 500 sectors closed noticeably higher, with technology and utilities up 8.78% and 7.85%, respectively, outpacing the rest.

The massive rally came despite US President Donald Trump saying Sunday that Americans are bracing for probably the toughest week ahead and a lot of deaths will occur due to COVID-19.

"The US will reach a horrific point in terms of death," Trump said, while voicing his optimism that "it will be a point where things will start changing for the better."

The number of COVID-19 cases in the United States topped 350,000 as of 3.30 p.m. local time Monday (1930 GMT), according to the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University.

The fresh figure reached 352,546 with 10,389 deaths, according to the CSSE.

US equities pulled back last week with data showing the coronavirus already hurting the economy.

For the week ending April 3, the Dow lost 2.7 %, the S&P 500 declined 2.1%, and the Nasdaq fell 1.7%.

"In the near term, we believe market performance primarily depends on how quickly economic activity can normalize following measures to contain the virus; and the extent to which policy responses can limit bankruptcies and job losses," UBS Global Wealth Management's Chief Investment Officer Mark Haefele said in a research note on Monday.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul rallied up to 2%.

Brent crude futures, the global oil benchmark, rose 2.66% to USD 33.93 per barrel on fresh hopes an OPEC-led meeting this week will reach an agreement to reduce oversupply and shore up the market.

The number of COVID-19 cases in India has stood at over 4,400 and the death toll was above 100, according to health ministry log.

Global tally of the infections has crossed 13 lakh, with over 74,000 deaths.

(with inputs from wire services)

SEE ALSO: World Bank approves $1 billion funding for India, $200 million for Pakistan to fight coronavirus
Coronavirus News and Updates
What are the Coronavirus symptoms and how to check for them at home