Equity markets on Tuesday recovered sharply from the losses in the previous session because of strong global cues.
Tuesday’s market gains were led by banking and metal stocks. IndusInd Bank, Bajaj Finance, Larsen & Toubro, State Bank of India, Axis Bank, ICICI Bank, HDFC, Tata Consultancy Services, Tata Steel and Bajaj Finserv were the major winners during early trade.
The Indian shares rose after the US markets rebounded in Monday’s trade after a sharp decline last week. All three major Wall Street indexes – Dow Jones, NASDAQ Composite and the S&P 500 – closed at over 2% higher to start the final quarter of the year on a positive note, reported Reuters.
Asian stocks also bounced on Tuesday a day after Britain decided to take back a proposal to cut taxes for citizens with incomes of £150,000 (Rs 1.3 crore) or more per year.
“The ‘risk-off, risk-on’ texture of the market is in response to fast-changing economic and market signals,” VK Vijayakumar, chief investment strategist at Geojit Financial Services, told Livemint. “For the near-term the market sentiments have turned positive with a declining trend in dollar and US bond yields. If this trend continues foreign institutional investors will again turn big buyers in India and they will not get stocks cheap.”