Indian markets rally on US stimulus hope

Indian stocks bounced back on Tuesday after a two-day sell-off as investors cheered the call for a much larger stimulus from US President-elect Joe Biden’s nominee to run the treasury department. Stocks soared as investors expected a larger stimulus programme to channel more liquidity into stocks, especially those in emerging markets. The gains pulled benchmark indices up by nearly 2%, the biggest daily advance since 25 November. BSE Sensex rose 834.02 points, or 1.72%, to 49,398.29. The Nifty gained 1.68% to 14,521.15. Shares across global markets climbed on Tuesday ahead of Janet Yellen’s confirmation speech as US treasury secretary. Yellen is expected to tell the senate finance committee that the government must “act big” with its next coronavirus relief package.