Sensex, Nifty jump over 2% to record highest increase in
The Indian markets on Tuesday posted their biggest single-day gain in nearly two
months as global investor sentiment improved on faster vaccine rollout in the US and
optimism around American President Joe Biden’s major infrastructure package.
Market players said JSW Steel’s completion of the resolution plan for Bhushan Steel and
Power, which included payment of Rs 19,350 crore to banks, helped boost sentiment.
They also attributed the sharp up-move to technical factors, such as the rebalancing of
Nifty indices taking effect. Analysts said many blue-chip stocks had entered “oversold”
territory last week, having come off sharply from their February highs.
The benchmark Sensex rose 1,128 points, or 2.3 per cent, to end the session at 50,136.
The Nifty50 index ended the session at 14,845, a gain of 338 points, or 2.3 per cent. The
indices posted their biggest jump since February 2 as investors chose to overlook rising
bond yields in the US, the prospects of a fresh lockdown in the financial capital Mumbai,
and the fallout of the collapse at Archegos Capital.
ALSO READ: From JSW to SAIL, major steel companies' stocks show strong upside
The market breadth was mixed, with 1,518 stocks advancing and 1,433 declining.
Barring three, all Sensex stocks ended the sessions higher. HDFC Bank was the best-
performing stock with a gain of 4.1 per cen. The stock alone made a 229-point
contribution to the Sensex gain.
Resuming trade after a three-day break, India was the best-performing major market on
Tuesday. Experts said it remains to be seen if the markets can hold on to the gains as
US yields have started to edge higher once again.
The US 10-year Treasury yield jumped 6 basis points to top 1.77 per cent, the highest in
14 months, on worries that the broad economic recovery in the US will fuel inflation.
On Monday, Biden announced his vaccination plan, saying that 90 per cent of American
adults will be eligible