Sensex up 100 points, Nifty at 11,857.45; HUL, ONGC, Tata Steel major gainers

Image courtesy: Reuters

Mumbai: Indian equity indices on Tuesday (February 25) witnessed a positive opening with the Sensex up 106.21 points, or 0.26 per cent, at 40,469.44, while the Nifty was up 28.05 points, or 0.24 per cent, at 11,857.45. Notably, the shares of HUL, ONGC, Tata Steel and Bharti Airtel traded with decent gains. 

Earlier on Monday, Indian benchmark indices plummeted tracking intense sell-off in global equities amid rising concerns over Chinese coronavirus epidemic.

After sinking 497 points in opening session, the BSE Sensex continuously fell and ended 806.69 points, or 1.96 per cent, lower at 40,363.23, while the NSE Nifty was also down by 242.85 points, or 2.01 per cent, at 11,838.60.

Meanwhile, Asian share markets were trying to stabilise today after a wave of early selling petered out and Wall Street futures managed a solid bounce, allowing investors to take a break from coronavirus fears.

Some dealers cited a Wall Street Journal report on a possible vaccine as helping sentiment, though human tests of the drug might not start until the end of April. Whatever the cause, E-Mini futures for the S&P 500 bounced 1% to pare some of the steep 3.35% loss the cash index suffered overnight.

South Korea`s hard-hit market edged up 0.8% and helped MSCI`s broadest index of Asia-Pacific shares outside Japan fight back to flat.

Japan`s Nikkei was still down 2.8%, but just catching up to the global sell-off having been shut on Monday. Shanghai blue chips eased 0.7% but also off early lows.

European and US stocks had suffered their biggest loses since mid-2016 amid fears the coronavirus was morphing into a pandemic that could cripple global supply chains and wreak far greater economic damage than first thought.

The risks were such that bond markets were wagering central banks would have to ride to the rescue with new stimulus. Futures for the Federal Reserve funds rate have surged in the last few days to price in a 50-50 chance of a quarter-point rate cut as early as April. In all, they imply more than 50 basis points of reductions by year end.

Central banks across Asia have already been easing policy, while governments have promised large injections of fiscal stimulus, something western countries might also have to consider.

The Dow had ended Monday down 3.55%, while the S&P 500 lost 3.35% and the Nasdaq 3.71%. Wall Street`s fear gauge, the CBOE Volatility Index, jumped to its highest close since early 2019.

(With Agency Inputs)