Markets regain despite coronavirus overhang

Mumbai: Markets snapped their two-session slide to close with smart gains on Tuesday, mirroring optimism in the global markets as investors wagered on limited economic impact of the coronavirus outbreak.

Led by gains in index heavyweights RIL, ICICI Bank and HDFC, the 30-share BSE Sensex settled 236.52 points, or 0.58 per cent, higher at 41,216.14. Similarly, the broader NSE Nifty rose 76.40 points, or 0.64 per cent, to 12,107.90. NTPC, Maruti Suzuki, SBI, PowerGrid, Bajaj Auto, UltraTech Cement and Axis Bank rose up to 2.95 per cent.

On the other hand, Bharti Airtel, Mahindra and Mahindra, Nestle India, TCS and Sun Pharma shed up to 0.75 per cent. Global markets rose as China re-opened for business after a forced extension to the Lunar New Year holiday because of the coronavirus outbreak.

"Easing concerns over the coronavirus issue after the drop in fresh cases came as a breather for markets. Since the full impact of the virus issue still remains unknown the extended shutdown is expected to dent economic growth this quarter.

We expect the domestic market to stay focused on the last batch of Q3 numbers and CPI inflation for the month of January. As per the consensus, inflation is expected to remain elevated confirming the recent action by the central bank," said Vinod Nair, Head of Research, Geojit Financial Services.

BSE utilities, power, metal, bankex, energy, healthcare and consumer durables indices rose up to 1.68 per cent, while FMCG and telecom closed in the red. Broader BSE midcap rose 0.35 per cent, while smallcap index slipped 0.18 per cent.

Meanwhile, Brent crude oil futures rose 1.58 per cent to $54.11 per barrel. On the currency front, the Indian rupee depreciated marginally to 71.30 per $ (intra-day).