May 26, 2024

Sensex, Nifty soar 1.7% on US stimulus hope; HDFC, RIL and ICICI Bank gain

By Administrator_ India

Capital Sands

The benchmark Sensex snapped its two-day, 1,000-point losing streak on Tuesday as investors regained their risk appetite on optimism that the US will announce more stimulus measures under the Joe Biden administration.

The index ended at 49,398, with a gain of 834 points, or 1.72 per cent — the most since November 5. The Nifty50 index rose 240 points, or 1.7 per cent, to 14,521, with 46 of its components posting gains.

Most global markets posted gains ahead of the testimony of Janet Yellen, Biden’s designated nominee for Treasury Secretary, before the Senate Finance Committee. The Street was hoping that the former chair of the US Federal Reserve will tell lawyers that the US risks a painful recession unless Congress approves another round of stimulus to help the economy.

“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 agencies.

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.

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