Sensex surges 376 points in line with global rally

NSE Nifty closed 100.30 points, or 1.02%, up at 9,914

Equity benchmark Sensex rallied 376 points on Tuesday, led by index heavyweights HDFC twins, ICICI Bank and Infosys amid strong cues from global equities.

The 30-share index, however, briefly turned negative in afternoon session after escalation in India-China border tension, but managed to recoup losses and settled 376.42 points, or 1.13%, higher at 33,605.22.

Similarly, the NSE Nifty closed 100.30 points, or 1.02%, up at 9,914.

HDFC Bank was the top gainer in the Sensex pack, jumping around 4 %, followed by HDFC, ICICI Bank, Infosys, Kotak Bank and Hero MotoCorp.

On the other hand, IndusInd Bank, Tech Mahindra, Axis Bank and ITC were among the laggards.

According to traders, Dalal Street was enthused by positive cues from global markets after US Federal Reserve launched a massive programme to support Main Street businesses hit by the virus lockdown.

The Fed announced its Main Street Lending Program and an emergency lifeline under which it will buy up to USD 750 billion in corporate bonds.

The plan is part of a massive financial backstop put in place by the bank to protect the economy from the worst of the virus crisis.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended up to 5% higher.

Stock exchanges in Europe too opened with significant gains.

However, massive escalation of border tension in the sensitive Galwan Valley in eastern Ladakh dampened domestic investor sentiment.

In the first such incident in the last 45 years reflecting massive escalation in the five-week border row, an Indian Army officer and two soldiers were killed during a violent confrontation with Chinese troops in the Galwan Valley on Monday night.

Meanwhile, the rupee pared initial gains and closed 17 paise lower at 76.20 against the U.S. dollar.

International oil benchmark Brent crude futures rose 1.41 % to $40.28 per barrel.

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