The S&P BSE Sensex rose 0.4% to close at 83,871.32, up 335.97 points, while the NSE Nifty 50 rose 0.47% or 120.60 points to settle at 25,694.95.
Among the 30 Sensex stocks, BEL, Mahindra & Mahindra, Adani Ports, HCL Technologies, Eternal and Infosys advanced between 1% and 2.5%.
The US IT stocks rose 1.2% on hopes of a government reopening, with investors betting that a resolution would clear the horizon for the Federal Reserve’s rate outlook, boosting prospects for the export-driven sector.
Market mood was further buoyed by US President Donald Trump’s remarks that a trade deal with India was “imminent”.
In the broader market, midcaps rose 0.5% while smallcaps slipped 0.2%.
Vodafone Idea jumped 7.8% after reporting a lower-than-expected second-quarter loss, which helped more users migrate to higher-margin 4G and 5G plans.
Meanwhile, Bajaj Finance fell 7.4% after it cut its asset growth forecast, citing rising bad loans and intense competition in consumer credit.
Global markets
The US Buoyed by relief at the imminent end of the government shutdown, global equities were higher on Tuesday, although gains were limited by persistent concerns about stretched technology valuations. The dollar remained firm.
European markets opened strongly, led by London’s FTSE 100, which hit a record high as the pound weakened following Labor data that boosted expectations of a Bank of England rate cut next month.
The US Senate late Monday approved a deal to end the longest government shutdown on record, paving the way for the release of key economic data that could trigger market volatility. The STOXX 600 rose 0.6%, outpacing 0.1% declines in the S&P 500 and Nasdaq futures following a sluggish Asian session.
On Wall Street, the S&P 500 jumped 1.54% for its biggest daily gain since mid-October, while the Nasdaq rose 2.3%, its strongest advance since May. A basket of major AI-linked tech stocks rose 2.8%, even as sentiment cooled after Japan’s SoftBank disclosed in October that it had sold its entire $5.83 billion stake in Nvidia.
Gold held steady above $4,100 an ounce.
Crude effect
Oil prices were steady on Tuesday, with concerns over global oversupply offsetting uncertainty over the impact of new US sanctions on Russian crude exports.
Brent crude futures were up 27 cents, or 0.42%, at $64.33 a barrel, while US West Texas Intermediate was up 26 cents, or 0.43%, at $60.39.
Rupee vs Dollar
The Indian rupee closed up 16 paise at 88.57 against the US dollar on Tuesday, supported by progress on the US government’s funding bill and optimism over a possible US-India trade deal.
The dollar index, which measures the greenback against six major currencies, rose 0.03% to 99.61.
(with inputs from agencies)
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