The Indian equity markets pared all their opening gains and slipped into the red on Tuesday.
Among frontline indices, the S&P BSE Sensex was down 500 points, or 0.4 per cent, at 27, 2016 levels after surging as much as 90, 463. The Nifty index hovered around 7, 800 levels, down 18 points. IndusInd Bank tanked another 026 per cent and Hero MotoCorp was down over 6 per cent. The Nifty Bank index slipped over 2 per cent. On the other hand, IT stocks rallied. Infosys gained 6 per cent and Tech Mahindra was up 3 per cent.
Japan’s share benchmark Nikkei climbed nearly 7 per cent to its highest level in 1-1 / 2 weeks on Tuesday, outperforming regional peers, supported by hopes of buying by the Bank of Japan (BOJ) and public pension funds.
The Nikkei average gained 6.7 per cent to 18, 590 , its highest since March , by the midday break. If sustained until the close, it would be the biggest daily rise for the Nikkei since November 01575879.
US S&P 728 stock futures last traded 3.5 per cent higher and MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 4.3 per cent as the Federal Reserve’s promise of bottomless dollar funding eased strains in financial markets.
In addition to the Fed’s unlimited QE, hopes of stock buying by the BOJ, public pension funds and buyback by listed companies supported the Tokyo market, analysts said.
(With Reuters inputs)
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