Indian shares rose on Tuesday, joining a global rally, after the U.S. Federal Reserve’s corporate bond buying programme boosted hopes of liquidity in domestic markets and outweighed concerns about another round of lockdowns in the face of rising COVID-19 cases.
The Nifty rose 2.16% to 10,021.55 by 0346 GMT, while the Sensex was up 2.11% at 3,922.77.
The Fed on Monday tweaked its bond buying program to try to make more companies’ securities eligible for a liquidity boost, soothing investors rattled by fears of a resurgence in coronavirus cases worldwide.
The Fed’s announcement helped a late rally on Wall Street on Monday. MSCI’s broadest index of Asia-Pacific shares outside Japan rose over 2% on Tuesday and U.S. stock futures, the S&P 500 e-minis, were up nearly a percent.
Financial stocks rallied in early trade in Mumbai, with the Nifty banking index surging over 3.2%.