India’s benchmark indices surged on Tuesday, recovering from the sharp downturn witnessed the previous day.
The Nifty 50 jumped 290.60 points, or 1.21%, to 24,189.85, while the BSE Sensex rallied 949.21 points, or 1.21%, to 79,708.61.
Among the sectoral indices, bank, auto, financial services, FMCG, IT, media, metal, pharma, PSU bank, private bank, realty, healthcare, consumer durables, oil, and gas opened in positive territory.
Foreign Institutional Investors sold net shares worth ₹10,074 crores on Monday, while domestic investors (DII) were net buyers in the Indian equities, with an investment of ₹9,156 crores.
“The risk-off sentiment was pervasive, and India saw an FPI cash equity net outflow of more than ₹10,000 crores. DIIs in turn bought most of this stock, providing a basis for India’s relative outperformance on a day of global panic,” said Ajay Bagga, Market and Banking Expert.
“The US Fed provided some guidance that it is not overreactive to one month’s weak data, unlike the markets. This rules out an emergency rate cut, at least for now. We don’t see US macros deteriorating into a recession for the next two quarters at least,” Bagga added.
Asian markets traded higher on Tuesday, with Japan’s Nikkei 225 rebounding 10.5% and South Korea’s Kospi rising over 4%.
Wall Street also looked steadier with S&P 500 futures rebounding 1.5%, while Nasdaq futures rose 2% and the pan-region Euro Stoxx 50 futures advanced 1.24%.
In energy markets, oil prices bounced early Tuesday as news that several U.S. personnel were injured in an attack against a military base in Iraq stoked fears of a wider conflict.
(With ANI input)