Gains across sectors - led by financial and metal stocks - pushed the markets higher
Domestic share markets finished a volatile session on Tuesday more than 1 per cent higher, having turned negative briefly amid fears of escalating tensions between India and China. The S&P BSE Sensex index soared more than 2 per cent to touch an intraday high of 34,022.01 during the session, and slumped 1,068.71 points to hit 32,953.30 on the downside in afternoon deals before turning positive. The broader NSE Nifty 50 benchmark moved in a wide range of 9,728.50-10,046.15, as against its previous close of 9,813.70. Gains in banking and financial services stocks pushed the markets higher, however losses in pharmaceutical counters kept the gains in check.
The Sensex ended 376.42 points - or 1.13 per cent - higher at 33,605.22 and the Nifty settled at 9,914.00, up 100.30 points - or 1.02 per cent - from its previous close.
In the 50-scrip Nifty basket, 24 stocks moved higher for the day. Top percentage gainers were HDFC Bank, HDFC, ICICI Bank, JSW Steel and Hindalco, closing between 2.86 per cent and 4.14 per cent higher. On the other hand, Tata Motors, Bharti Infratel, IndusInd Bank, Tech Mahindra and Axis Bank - ending between 2.41 per cent and 5.87 per cent lower - were the top Nifty losers.
HDFC and HDFC Bank alone accounted for a gain of more than 250 points in the Sensex.
Both benchmark indices gained on hopes of a liquidity boost from the formal start of the US central bank's corporate bond-buying program.
Global stocks rose after the Federal Reserve said it would start purchasing a diversified range of investment grade US corporate bonds on Tuesday in a bid to secure companies' access to cash and ensure credit market liquidity amid the COVID-19 pandemic.
MSCI's broadest index of Asia-Pacific shares outside Japan recorded its biggest intraday gain since June 1, and rose 2.38 per cent for the day, and Japan's Nikkei 225 benchmark climbed up 4.88 per cent. China's Shanghai Composite and Hong Kong's Hang Seng indices moved 1.44 per cent and 2.39 per cent higher respectively.
The Federal Reserve said it will start purchasing corporate bonds on Tuesday in the secondary market, one of several emergency facilities launched in the wake of the coronavirus pandemic.
Global equities had fallen sharply from late last week due to worries about the US economy and confirmation of a new coronavirus cluster in Beijing.
However, the US central bank's corporate bond purchases and data showing new infections in Beijing are under control helped equities quickly reverse course and head higher.
European share markets started Tuesday's session on a stronger note, with the United Kingdom's last seen trading 2.42 per cent higher. France's CAC and Germany's DAX indices were up 2.44 per cent and 3.14 per cent at the time respectively.
The E-Mini S&P 500 futures traded 1.28 per cent higher at the time, indicating a positive start for US markets on Tuesday.
