NEW DELHI: Equity indices rebounded on Tuesday with the benchmark BSE sensex rising more than 1,300 points in initial trade as the global sentiment improved after the US Federal Reserve pledged to spend as much as needed to steady the financial system.
But as the trading progressed, the 30-share BSE platform wiped out most of its early gains to trade 369 points or 1.42 per cent higher; while the broader NSE Nifty moved 59 points or 0.78 per cent up.
Top gainers in the BSE pack included HCL Tech, Hindustan Unilever, Tech Mahindra, Infosys, Axis Bank and Reliance Industries with their stocks up as much as 7 per cent.
On NSE, sub-indices Nifty Pharma and Financial Services surged as much as 5.95 per cent.
The US central bank said on Monday it will back purchases of corporate bonds, backstop direct loans to companies and “soon” will roll out a program to get credit to small and medium-sized business. It also said it will expand its asset purchases by as much as needed to stabilise financial markets.
“This open-ended and massively stepped-up programme of QE (quantitative easing) is a very clear signal that the Fed will do all that is needed to maintain the integrity and liquidity of the Treasury market, key asset-backed markets and other core markets,” David de Garis, a director of economics at NAB, tld news agency Reuters.
On Monday, Nifty and sensex crashed 12.98 per cent and 13.15 per cent, respectively, their biggest plunges on record. The rupee hit a fresh record low against the dollar.
On the global front, Asian stocks also rallied as the US Fed’s sweeping pledge to spend whatever it took to stabilise the financial system eased debt market pressures, even if it could not offset the immediate economic hit of the coronavirus.
Both the domestic and markets abroad were spooked as the deadly coronavirus continued to spread.
The count of coronavirus cases in India stood close to 500, with 498 cases reported so far by the states. Meanwhile, complete lockdowns were announced in 30 states/ UTs and 606 districts.
(With agency inputs)
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