Markets soar as bulls back in action on stimulus hopes

Mumbai: Reversing two days of heavy losses, the Sensex posted its biggest jump in almost four months on Tuesday as investors returned to buying mode amid expectations of fresh stimulus in the US and other economies.

A recovering rupee and persistent foreign capital inflows further buoyed sentiment, traders said. The 30-share BSE Sensex soared 834.02 points or 1.72 per cent to close at 49,398.29. It was its biggest single-day gain since September 25, 2020, when it had climbed 835 points.

Similarly, the broader NSE Nifty rallied 239.85 points or 1.68 per cent to finish at 14,521.15. Bajaj Finserv was the top gainer in the Sensex pack, jumping 6.77 per cent, followed by Bajaj Finance, HDFC, L&T, ICICI Bank, Sun Pharma and NTPC. HDFC twins, Reliance Industries and ICICI Bank accounted for almost half of the benchmark's gains.

Only three Sensex components closed in the red - Tech Mahindra, ITC and M&M, shedding up to 0.54 per cent. Global equities were on an upswing after US President-elect Joe Biden's nominee for treasury secretary, former Federal Reserve chair Janet Yellen batted for more measures to fight the recession and avoid an even worse downturn.

In testimony prepared for her confirmation hearing on Tuesday before the Senate Finance Committee, Yellen said more aid is needed to get coronavirus vaccines distributed and help families struggling with job losses stay fed and housed.