Banks, global cues fuel stocks

The stock market remained buoyant for the second straight session on Tuesday, with the BSE Sensex closing 108 points higher as banking shares rallied following a surprise cut in the government’s borrowing programme and investors’ sentiment improved on signs of easing global trade war fears.

Banking stocks were the session’s biggest gainers, with State Bank of India emerging on top of the Sensex pack.

After a sharp fall over the last few sessions, the Indian equities have seen some recovery in the past two sessions.

Trading sentiment got a lift in the wake of the government’s announcement to borrow ~2.88 trillion in the April- Sensex movement September period of 2018-19, lower than ~3.72 trillion it had borrowed in the first half of the current fiscal year. Reports on renegotiation of tariffs between the US and China eased trade war concerns and lifted global equities.

Also, short-covering by speculators ahead of the March futures and options expiry and fiscal deficit data to be released on Wednesday added to the positivity.

Market participants also took note of the finance ministry’s statement that said India was on track to double the size of its economy to $5 trillion by 2025, while asserting that the inflation target set by the RBI will not be breached.

After a strong opening, the Sensex hit a high of 33,371.04, before closing at 33,174.39, up 107.98 points, or 0.33 per cent. It had gained almost 470 points in the previous session.

The 50-share Nifty scaled a high of 10,207.90 intra-day, but succumbed to profit-booking to finish at 10,184.15, up 53.50 points, or 0.53 per cent.

Both foreign institutional investors and MFs emerged as strong buyers on Tuesday, buying shares worth ~10.6 billion and ~21.7 billion, respectively.