Sensex jumps 595 points amid US-India trade talks

Stock markets rebounded on Tuesday with the benchmark Sensex climbing nearly 595 points on renewed optimism over the resumption of the India-US trade talks.

The 30-share BSE Sensex jumped 594.95 points or 0.73 per cent to settle at 82,380.69 following buying in auto and IT shares. During the day, it surged 657.74 points or 0.80 per cent to 82,443.48.

The 50-share NSE Nifty climbed 169.90 points or 0.68 per cent to 25,239.10.

Chief negotiators of India and the US have commenced talks on the proposed trade agreement to iron out issues in the wake of steep tariffs that have created uncertainties for exporters, an official said on Tuesday.

A rally in Asian and US peers also instilled optimism in the domestic stock market ahead of this week's US Federal Reserve policy meeting.

Among Sensex firms, Kotak Mahindra Bank rose the most by 2.55 per cent. Larsen & Toubro, Mahindra & Mahindra, Maruti, Bharti Airtel and Tata Steel were also among the major gainers. Asian Paints and Bajaj Finance closed with losses.

“The domestic market sustained its recovery trend, supported by favourable global cues on expectations of a 25 bps rate cut in the forthcoming US Fed policy decision and renewed optimism surrounding the resumed India-US trade negotiations.

“Auto and consumer durable stocks outperformed, ahead of the rollout of new GST rates and festive-driven demand expectations," Vinod Nair, Head of Research, Geojit Investments Limited, said.

The BSE smallcap gauge climbed 0.66 per cent and midcap index went up by 0.62 per cent. Among sectoral indices, services jumped the most by 1.67 per cent, followed by telecommunication (1.50 per cent), auto (1.43 per cent), teck (1.05 per cent), industrials (1.05 per cent), realty (1.02 per cent), consumer discretionary (0.96 per cent) and commodities (0.90 per cent).

FMCG emerged as the only laggard. “The rally was driven by strong gains in auto, realty, and financial stocks, as optimism grew around ongoing India-US trade talks and expectations of a US Federal Reserve rate cut later this week," Gaurav Garg, Research Analyst, Lemonn Markets Desk, said. — PTI