Domestic stock markets also rose strongly on Tuesday due to the fast trend in the global markets and the BSE 30 Sensex closed up at 834 points. HDFC and HDFC Bank, ICICI Bank and Reliance Industries, which have a large weight in the Sensex, recorded good gains.
At the end of trading, the Sensex jumped 834.02 points or 1.72 per cent to 49,398.29 points and the NSE Nifty rose 239.85 points or 1.68 per cent to 14,521.15 points. Among the Sensex stocks, Bajaj Finserv climbed nearly 7 per cent. After this, shares of Bajaj Finance, HDFC, Larsen and Toubro, ICICI Bank, Sun Pharma and NTPC also registered an increase. In contrast, Tech Mahindra, ITC and Mahindra & Mahindra had a downward trend.
According to Binod Modi, strategy head of Reliance Securities, the domestic stock markets mainly got a better signal from the global markets after the huge fall in the last two trading sessions. He said, “A positive statement like the possibility of Janet Yellen giving strong support to the economy has strengthened the confidence of investors worldwide.”
The US elected President Joe Biden has nominated Janet Yellen, the former head of the Federal Reserve, to be finance minister. He has called on the US Congress to take more steps to fight the economic downturn and to avoid even further deterioration. Yellen stated that further assistance is needed for the delivery of the Coronavirus vaccine.
In other markets of Asia, Hong Kong, Seoul and Tokyo closed with a good lead, while Shanghai declined. Europe’s stock markets started positively. Meanwhile, global crude oil benchmark Brent crude was up 1.22 per cent at $ 55.42 a barrel.