After seven straight sessions of losses, Indian equity indices gained ground on Tuesday on the back of a global rally as investor sentiment improved over hopes of global coordinated measures to address the economic impact of the COVID-19 outbreak.
The 30-share Sensex gained 479.68 points, or 1.26%, to close at 38,623.70. The broader Nifty ended at 11,303.30, gaining 170.55 points or 1.53%. “After witnessing a trending fall in the last seven days, the market rebounded today but not before exhibiting volatility in intraday trades,” said Shrikant Chouhan, senior V-P, Equity Technical Research, Kotak Securities.
“Volatility at the bottom of the fall means the market is starting to form a short term bottom. The G7 meeting and its outcome would be a keenly watched event. If the result is good then it will be good for the equity markets,” Mr. Chouhan added.
Incidentally, a joint statement from G7 nations issued after the close of Asian markets did not suggest any concrete steps to address the growing economic fallout of coronavirus pandemic.
Elsewhere in Asia, the benchmarks of China, Indonesia, Taiwan and South Korea all gained ground even as the overnight Dow Jones registered one of its biggest single day gain of nearly 1,300 points.
Back in India, foreign portfolio investors (FPIs) continued to be net sellers in equities at ₹2,416 crore on Tuesday.
Overall market breadth was slightly in the negative with more than 1,200 stocks in the red as against 1,118 gainers.
In the Sensex pack, stocks like Hero Motocorp, Power Grid Corporation, ONGC, NTPC and Tata Steel among others gained more than 3% each on Tuesday.