Stimulus hopes boost stock markets

Mumbai: The Indian stock market began the post-Diwali session with a bang on Tuesday, with the benchmark Sensex surging 582 points to close at a near four-month high on hopes of more economic stimulus measures and income tax cuts.

Starting the first full session of Samvat 2076 on a bullish note, the 30-share Sensex soared over 666 points before settling 581.64 points, or 1.48 per cent, higher at 39,831.84.

It hit an intra-day high of 39,917.01 and a low of 39,254.12. Likewise, the broader NSE Nifty rallied 159.70 points, or 1.37 per cent, to close at 11,786.85.

Bourses saw a broad-based buying throughout the day as sentiment was further boosted by encouraging quarterly corporate earnings and US-China trade deal optimism.

Sectorally, BSE auto and metal indices rallied up to 4.25 per cent; followed by energy, industrials and IT indices, rising up to 2.32 per cent. On the other hand, BSE telecom index was the only sectoral loser, 4.39 per cent. Broader BSE midcap and smallcap indices too rose up to 1.12 per cent.

Analysts said early signs of improving in consumer spending in the festive season, the government's focus on stimulating the economy along with favourable global cues have taken the benchmark indices to four-month high level on Tuesday.

The result season has also been fairly decent this time around and is not likely to result in any material downgrade in earnings estimates at Sensex/Nifty level.

Meanwhile, the Indian rupee closed with marginal gains at 70.84 against the $. Brent crude futures, the global oil benchmark, fell 0.97 per cent to $60.97 per barrel.