Benchmark indices on Tuesday erased most of their losses over the past two trading sessions as (stock market futures)  positive global cues, stoked by expectations of a larger US economic stimulus, sent the Sensex soaring 834 points.

                                  sensex-roars-budget-before unioin-buudget-2021

The index had taken a knock of more than 1000 points weighed down by expensive valuations and the likelihood of tougher RBI rules for the larger shadow banks.

However, stocks on Tuesday staged a rebound largely because of strong cues from global markets  (stock market futures)  amid reports of nominee US treasury secretary Janet Yellen — a (stock market futures)  former Federal Reserve chairman — seeking more support from Congress to fight the ravages of the pandemic.

In her testimony prepared for her confirmation hearing on Tuesday before the Senate Finance (stock market futures)  Committee, Yellen said more aid was needed to get coronavirus vaccines distributed, to reopen (stock market futures)  schools and help families struggling with job losses stay fed and housed.

In Asia, bourses in Hong Kong, Seoul and Tokyo ended with significant gains, while Shanghai was in the red. Stocks exchanges in Europe were also trading on a positive note in early deals.

Market circles added the sentiment remained positive as global liquidity was abundant with (stock market futures)  various central banks continuing to support their economies.

While this is likely to see strong inflows from FPIs, strong corporate results could see buying momentum persist. Though the focus is now expected to shift to the Union budget, experts (stock market futures)  warned the markets could see a correction once the key event was over.

“The results season has started well and sent out encouraging signs. The vaccination drive is progressing well. Also, the global cues have been positive with expectation of a large fiscal push in the US. The overall sentiment is quite bullish. We expect that the market will now take its next major cue from the Budget. The multiple expansion driven returns will ease out and returns will be linked more to growth from here on,’’ Mohit Ralhan, managing partner & CIO, TIW Private Equity said.

The BSE Sensex opened strong at 48900.31 and hit an intra-day high of 49499.86 after which it settled at 49398.25 — a gain of 834.02 points or 1.72 per cent. Similarly, the broader NSE Nifty surged 239.85 points or 1.68 per cent to 14521.15.

In the Sensex pack, 27 stocks ended in the green and the list was led by Bajaj Finserv which (stock market futures)  rallied around 7 percent. It was followed by Bajaj Finance, HDFC, L&T, ICICI Bank and Sun Pharma.

The rally in the stock markets had a positive rub-off on the domestic currency which gained 11 (stock market futures)    paise to settle at 73.17 against the dollar.

At the forex market, the unit opened at 73.16 and hit an intra-day high of 73.14 and a low of (stock market futures)   73.31. It finished at 73.17, higher by 11 paise over its last close amid weakness in the greenback. The dollar index, which gauges its strength against a basket of six currencies, fell 0.22 per cent to 90.52.


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