Mumbai, India (BBN) – Domestic shares gained on Tuesday as losses in the previous session were seen as overdone, with the sentiment also improving as Asian markets recovered after some of the anxiety about US President Donald Trump’s ability to push his agenda subsided.
Sustained foreign fund inflows also boosted the domestic sentiment, reports The Hindu Business Line.
At 1:45pm, the 30-share BSE index Sensex was up 150.31 points or 0.51 per cent at 29,387.46 and the 50-share NSE index Nifty was up 45.65 points or 0.5 per cent at 9,090.85.
Barring oil & gas, all other sectoral indices were trading in the positive zone.
Among them, metal index gained the most by 0.76 per cent, banking 0.67 per cent, TECk 0.66 per cent and healthcare 0.61 per cent, while oil & gas index was down 0.38 per cent.
Top five Sensex gainers were Axis Bank (+2.3 per cent), HDFC (+1.91 per cent), Sun Pharma (+1.13 per cent), Tata Motors (+1.1 per cent) and TCS (+1.02 per cent), while the major losers were ONGC (-1.08 per cent), Hero MotoCorp (-0.58 per cent), ITC (-0.5 per cent), Reliance (-0.42 per cent) and GAIL (-0.41 per cent).
According to analysts, broader gains are likely to be capped in the near term as India approaches the earnings season starting next month.
Global factors will also continue to play a role as many of the recent gains have been predicated on Trump implementing massive stimulus measures to boost the US economy.
“Markets are waiting for the results season. Structurally, we have got most of the reforms getting in place and things are positive on the political front. Only concern is higher valuation levels. That makes the upcoming earnings all the more crucial,” said Siddharth Sedani, vice president, equity advisory at Anand Rathi.
Asian stocks advanced on Tuesday after Wall Street steadied and the dollar bounced from a four-month-low, as anxiety over Donald Trump’s setback on healthcare reform gave way to tentative hopes for the US President’s planned stimulus policies.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.6 per cent.
The S&P 500 cut earlier losses on Monday to end slightly lower, while the Dow declined for an eighth straight session, as investors assessed how the defeat of President Donald Trump’s first major legislative action would impact the rest of his agenda.
The Dow Jones Industrial Average fell 45.74 points, or 0.22 per cent, to 20,550.98, the S&P 500 lost 2.39 points, or 0.10 per cent, to 2,341.59 and the Nasdaq Composite added 11.64 points, or 0.2 per cent, to 5,840.37.