Nifty Closes At New 3-Month High As Markets Extend Gains To Fourth Day

Domestic stock markets continued to rise for a fourth straight session on Tuesday, propelled by gains across sectors and foreign fund inflows. The S&P BSE Sensex index rose as much as 1.64 per cent - or 570.84 points - to touch 35,482.16 during the session, having started the day up 104.41 points at 35,015.73. The broader Nifty benchmark moved to as high as 10,484.70, after opening stronger at 10,347.95 compared to its previous close of 10,311.20. Buying across sectors - led by financial, consumer goods and metal stocks - supported the markets.

The Sensex ended 519.11 points - or 1.49 per cent - higher at 35,430.43, and the Nifty settled at 10,471.00, up 159.80 points - or 1.55 per cent - from its previous close. The 50-scrip index registered a new three-month high, closing at its best level recorded since March 11.

"Good monsoon progress, good crop from last season, good liquidity, gradual unlocking of the economy and steady resumption to work" is driving the markets higher, Anita Gandhi, director at Arihant Capital Markets, told NDTV.

All but four shares in the Nifty basket ended higher. Bajaj Finance, Larsen & Toubro, IndusInd Bank, NTPC and Hindalco, rising between 5.43 per cent and 9.28 per cent, were the top percentage gainers. On the other hand, Reliance Industries and Bharti Airtel ended 1.40 per cent and 0.63 per cent lower respectively.

Larsen & Toubro, Infosys and ICICI Bank alone contributed more than 150 points to the gain in Sensex.

Market breadth was highly positive with an advance-decline ratio of more than 2:1, as 1,963 stocks on the BSE ended higher against 759 that moved in the opposite direction.

"Also, foreign institutional investors have been net buyers for last few sessions," Ms Gandhi added. 

Foreign institutional investors have been net buyers for the past few sessions Foreign portfolio investors (FPIs) have so far this month net purchased Indian shares worth Rs 21,763.5 crore, as against Rs 14,569 crore in May, according to exchange data. In March and April, they were net sellers of Indian stocks worth a total Rs 68,857 crore, data from the National Securities Depository showed.

Equities in other Asian markets moved higher, having see-sawed in a wild ride earlier following confusing statements from the White House over the US-China trade deal, with President Donald Trump later clarifying the pact was "fully intact". Mr Trump's tweet bolstered market sentiment, with Asian shares quickly turning around to the positive territory.

MSCI's broadest index of Asia Pacific shares outside of Japan rose 0.97 per cent, whereas Japan's Nikkei 225 benchmark climbed up 0.50 per cent for the day.

Risk sentiment had taken a knock early in the Asian day after White House trade adviser Peter Navarro said the trade deal with China was "over", linking the breakdown in part to Washington's anger over Beijing not sounding the alarm earlier about the coronavirus outbreak.

The E-Mini S&P 500 futures were down 0.05 per cent in Asian trade, indicating a flat to negative start for US markets on Tuesday.

European share markets started Tuesday's session on a positive note, with the United Kingdom's FTSE index last seen up 1.19 per cent in early trade. France's CAC and Germany's DAX indices were up 1.69 per cent and 2.62 per cent at the time respectively.

(With inputs from agencies)