Markets Open High In Early Session, Kotak Mahindra Bank, Bajaj Finance, Mahindra & Mahindra Supports The Rally

Sensex surged 110 points or 0.33 percent at 33,414.06 while Nifty breaching its psychological marks at 9,861.05 level and rose 34.90 points or 0.36 percent.

New Delhi: Markets opened positive for the second consecutive day with Sensex surging 110 points or 0.33 percent at 33,414.06 while Nifty breaching its psychological marks at 9,861.05 level and rose 34.90 points or 0.36 percent on Tuesday at 10.17 am. The markets turned volatile since the opening in the early trading session.

The stock markets didn’t seem to be perturbed by Moody’s Investors Service downgrading the country’s sovereign credit rating by a notch to the lowest investment grade with a negative outlook.

The 30-stock benchmark index Sensex was supported by top gainers including Kotak Mahindra Bank followed by Mahindra & Mahindra and Bajaj Finance which rose 3 percent each.

Even the Nifty sectoral indices were in positive lifted by Nifty Auto and Nifty Pharma indexes, both up over 1 percent. Mahindra & Mahindra (M&M) surged 4 percent to Rs 477 on the Bombay stock exchange on Tuesday. The stock had rallied 10 percent in the last two trading sessions, after the tractor company managed to sell 24,017 tractors in the domestic market in May 2020 amid the Covid-19 lockdown. The company had sold 23,539 units during the same month last year.

The relaxation in the nationwide lockdown aided the agricultural sector to jump back spurring the demand for tractor during May.

Around 18 companies, including FMCG companies such as Britannia, Indigo, and Motherson Sumi, are expected to announce their results today.

Asian stocks opened mixed on Tuesday as investors closely watch the US government action on the deployment of the US military to control the social unrest.

Meanwhile, US stocks reversed their earlier losses to finish with modest gains, as investors weighed the possibility of normalizing economic activities.

On Monday, the Dow Jones Industrial Average rose 91.91 points, or 0.36 percent, to 25,475.02. The S&P 500 increased 11.42 points, or 0.38 percent, to 3,055.73. The Nasdaq Composite Index was up 62.18 points, or 0.66 percent, to 9,552.05, Xinhua news agency reported.

All 50 states in the US have eased the Covid-19 restrictions to kick start economy even as fear of the second wave of the disease remains.

The market gains were pared due to the violent protests across the country over the death of African American George Floyd fuelled concerns over the economic recovery.

Monday’s moves followed a solid month on Wall Street that saw the Dow rise 4.3 percent, the S&P 500 gain 4.5 percent, and the tech-heavy Nasdaq mark a 6.8 percent return for May.

On the data front, US manufacturing PMI (Purchasing Managers‘ Index) registered 43.1 percent in May, up 1.6 percentage points from the April reading of 41.5 percent, the Institute for Supply Management reported on Monday.

(With inputs from IANS)