Market gauge Sensex on Tuesday shot up 917 points to clock its best day in over four months, recouping losses incurred in a brutal sell-off on Budget day, as investors globally seemed to gather confidence amid efforts to contain coronavirus.Also Read - ‘Union Budget 2020 Gives Blueprint to Take Economy Forward,’ Says Sitharaman at FICCI Event
Rising for the second straight session, the BSE benchmark closed at 40,789.38, up 2.30 per cent or 917.07 points. This was the biggest single-day rise for the Sensex since September 23, 2019. Also Read - Fiscal Slippage Announced in Union Budget 2020 is 'Modest', Says Fitch Ratings
Likewise, the broader NSE Nifty settled at 11,979.65, surging 2.32 per cent or 271.75 points — gaining the most in a single day in over four months. Also Read - Sensex Sinks 988 Points as Union Budget Fails to Live up to Market Expectations
Giving a thumbs down to the much-awaited Union Budget, the Sensex took a massive plunge on last Saturday to mark its worst session in over a decade as the government failed to meet market expectations.
But the benchmark indices gaining for the last two sessions shows investors have shrugged off Budget disappointment and focussing now on other market-moving factors like corporate earnings and macroeconomic data.
Investors cheered the country’s manufacturing sector activity climbing to a near eight-year high in January, helping domestic stocks end higher on Monday — the very first session after Budget.
On Tuesday, Titan was the biggest gainer in the Sensex pack, rallying 7.97 per cent, followed by ITC, HDFC, Bajaj Finance, and Tata Steel.
On the other hand, Bajaj Auto and HUL were on the losing side.
All sectoral indices ended with gains with BSE consumer durables, metal, oil and gas, energy realty and finance indices rallying up to 3.52 per cent.
Broader BSE midcap and smallcap indices advanced up to 1.37 per cent.
“Indian markets witnessed a strong rally on the back of rally in global markets. The Indian markets have wiped off all the losses incurred on the budget day to close almost at the pre-budget level. Investors have shifted their focus back on earnings and are finding solace in healthy margins reported by many companies,” Hemang Kapasi, Portfolio Manager – Equity Investment Products, Sanctum Wealth Management, said.
Brent crude oil futures advanced 0.96 per cent to USD 54.97 per barrel.
On the currency front, the Indian rupee appreciated by 11 paise to 71.27 per US dollar.
Most analysts said efforts to contain the deadly coronavirus in China and a significant drop in global crude oil prices in recent days also helped improve investor sentiment.
In Asia, Shanghai, Hong Kong, Tokyo and Seoul markets settled with firm gains.
Stock exchanges in Europe too opened on a positive note.