Stock market recovers on positive global cues; hoping for rate cut by RBI tomorrow

Mumbai, (thestates.news) | Battered Indian stock market on Tuesday rebounded with the BSE Sensex recovering nearly 1,090 points and the Nifty ending above 22,500 due to several factors such as positive global cues, easing of trade war fears and anticipated rate cut by the Reserve Bank of India in its policy decision tomorrow.

The market opened on a positive note and staged a smart recovery from a steep fall yesterday. The BSE Sensex touched 74,859.39 day’s high before closing at 74,227.08 with a gain of 1,089.18 or 1.49 per cent up from its previous close. Similarly the 50-share NSE Index Nifty touched day’s high of 22,697.20 and closed at 22,535.85 with gains of 374.25 points or 1.69 per cent up.

According to reports many nations are looking at entering into bi-lateral agreements with the US after the President Donald Trump announced imposition of reciprocal tariffs on April 2. Among the Asian market, Nikkei of Japan rose 6.03 per cent and the Hang Seng of Hong Kong rose 1.51 per cent from their previous close.

The Foreign Institutional Investors (FIIs) had sold equities in the cash segment worth Rs 9,040 crore in the last trading session yesterday while the Domestic Institutional Investors had bought worth Rs 12,122.45 crore, according to data available.

Hopes of a possible RBI rate cut to address liquidity challenges contributed to the upside, a leading broker in the market said adding that the market’s fear gauge, India VIX, dropped significantly, indicating reduced investor anxiety.

Jio Financial, Shriram Finance, Titan Company, Cipla, Bharat Electronics were among major gainers on the Nifty, while only loser was Power Grid. All the sectoral indices ended in the green with Capital Goods, Consumer Durables, FMCG, Oil and Gas, PSU, Realty, Telecom, Media up 2-4 percent.

BSE Midcap index rose 1.8 percent and Smallcap index added 2 percent. In the 30-share BSE Sensex, share prices of 29 companies ended in green that is up from their previous closing prices, while only of one company that is Power Grid ended in red. Indian current Rupee shed 40 paise and closed at 86.24 versus USD compared to 85.84 yesterday. (UNI)