Domestic equity index saw a gap-up opening on Tuesday when compared to Monday after crude oil prices are falling down and records 13-months low on Monday as the coronavirus sudden occurrence and reduce Chinese demand.
Border market index was in line with their headline peers as Nifty Smallcap added 1.65 percent to 6,139 while Nifty Midcap advanced 0.99 percent to 17,884. Nifty 500 was up 1.65 percent to 9,810.
The Bombay Stock Exchange added nearly Rs 2 lakh crore during the first 90 minutes on Tuesday. It was on Rs 153.72 lakh crore on Monday and now it is Rs 155.72 lakh crore on Tuesday.
All sectoral index was up on National stock exchange:
- The Nifty Financial Services
- A Nifty IT
- The Nifty Media
- Nifty Auto
- Nifty Pharma
The main factors that boosted market sentiment:
Fall of oil prices:
Crude oil prices fall on Monday as coronavirus affect the demands of the Chinese market. Brent crude settled $2.17, or 3.8 percent, lower at $54.45 q barrel, it’s lowest ever since January last year.
However, it gained a little bit today now the barrel rate is $54.66.
Cheaper crude oil in the International market is good for India, as the country imports more than 80 percent of its domestic needs.
Meanwhile, three opec+ and an industry source were considering cutting oil output by a further 500,000 barrels a day (BPD) due to the impact on oil demands from the coronavirus.
Rupee jumped to 0.23 percent or 16 paise against the US dollar in early trade, which is a good sign for India. It was trading at $71.20 level. A stronger rupee makes the import of goods cheaper.
Global markets hold gains:
Traders in India took a positives from the global market due to the fall of the Chinese market. Asian stocks bounced on Tuesday with Chinese markets facing some of their downfalls.
Overnight, US stocks also closed with gains in heavyweight technology shares and boosted US manufacturing activity.