Stimulus hopes drive markets to 7-wk high

Mumbai: Indian equities remained on the front foot for the second consecutive session on Tuesday, with benchmarks settling at a near seven-week high amid hopes of more stimulus measures to cushion the coronavirus-induced economic shock.

The BSE gauge Sensex closed above the psychological 32,000-mark after more than six weeks. The index settled 371.44 points or 1.17 per cent higher at 32,114.52. It hit an intra-day high of 32,199.91 and a low of 31,661.34.

Similarly, the NSE Nifty advanced 98.60 points, or 1.06 per cent, to close at 9,380.90 – its highest closing level since March 13. Financial stocks led the rally on the Sensex for the second straight session on Tuesday, buoyed by RBI's Rs 50,000-crore special liquidity support to the mutual fund industry. On the Sensex chart, IndusInd Bank was the top gainer, rallying over 15 per cent, followed by Bajaj Finance, HDFC, Axis Bank and ICICI Bank.

On the other hand, Sun Pharma, NTPC, Nestle India, HCL Tech and Bharti Airtel were among the prominent losers. Sector-wise, BSE finance, bankex, consumer durables, oil and gas, realty and auto indices rallied up to 3.53 per cent; while healthcare, telecom, FMCG and power indices fell up to 1.65 per cent. In the broader market, midcap and smallcap indices rose up to 0.80 per cent. Other than hopes of another stimulus by the government, positive cues from the global arena about easing coronavirus-induced curbs also enthused investors in the domestic market.

European stocks advanced on data showing slowing growth in the deadly virus that has closed the global economy and on strong earnings reports that outweighed a slump in oil prices. International oil benchmark Brent crude futures advanced 1.95 per cent to $23.52 per barrel.