“But right now, with interest rates at historic lows, the smartest thing we can do is act big. I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time,” said a copy of her prepared remarks obtained by news
US futures rose, but the dollar weakened following the report. Analysts said any signal by the US Fed to increase its bond buying programme would give a further boost to equites. They said investors were eyeing the potential size and timing of the stimulus package.
“Bulls took control after two days of massive sell-off on expectation that a bigger US stimulus will keep liquidity alive. The current market will get further boost by foreign inflow if additional US stimulus kicks in. However, recent volatility in the market has increased due to concerns over high valuations and bond yields, investors should be watchful,” said Vinod Nair, head of research at Geojit Financial Services.
Foreign portfolio investors (FPIs) were net-buyers to the tune of Rs 257 crore on Tuesday. They had pumped in over Rs 1,500 crore in the previous two sessions as well, even as the benchmark indices fell over two per cent.
The broader markets
also saw a sharp rebound with the Nifty Midcap 100 index gaining 2.3 per cent, while the Nifty Smallcap 100 index rose 1.7 per cent. Overall, 2,124 stocks advanced, while only 874 declined on the BSE.
Among the biggest Sensex gainers were Bajaj Finserv and Bajaj Finance, which jumped 6.8 per cent and 5.3 per cent, respectively. HDFC, Reliance Industries and ICICI Bank had the biggest contribution of over 300 points to Sensex gains.
Market players said the earnings season has so far acted as a tailwind for the markets.
“The result season has started well. The vaccination drive is progressing well. Also, global cues have been positive with expectation of a large fiscal push in the USA. The overall sentiment is quite bullish. We expect that the market will now take its next major cue from the Budget. The multiple expansion driven returns will ease out and returns will be linked more to growth from here on,” said Mohit Ralhan, managing partner & Chief Investment Officer, TIW Private Equity.
The India VIX index, a gauge of volatility, cooled off six per cent to end below 23.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.