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Sensex Gains Over 250 Points, Nifty Tops 10,950; Auto Stocks Jump

Sensex Gains Over 250 Points, Nifty Tops 10,950; Auto Stocks Jump

Domestic stock markets started Tuesday's session on a positive note tracking gains in global markets, after strong US manufacturing data and gains in tech stocks helped investors look past broader worries about the coronavirus and the world economy. The S&P BSE Sensex index opened 153.26 points - or 0.41 per cent - higher at 37,092.86, and the broader NSE Nifty 50 benchmark started the day at 10,946.65, up 55.05 points - or 0.51 per cent - from its previous close. Analysts awaited the Reserve Bank of India's policy statement due later this week for cues.

At 9:21 am, the Sensex traded 263.52 points - or 0.71 per cent - higher at 37,203.12, while the Nifty was up 75.55 points - or 0.69 per cent - at 10,967.15. 

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9 per cent, while shares in China nudged up 0.1 per cent. Australian stocks gained 2 per cent for the biggest intraday gain since July 21. Tokyo shares also jumped by more than 1 per cent.

Oil futures gave up their overnight gains and fell in Asia due to nagging worries about an increase in the supply of crude. US stock futures were 0.02 per cent higher in Asia.

An industry gauge released overnight indicated US manufacturing activity expanded in July at the fastest pace in more than a year, which helped Wall Street shares rise on Monday.

However, some investors remain cautious due to worries about a resurgence of the coronavirus and a diplomatic tussle over Chinese tech companies' operations in the United States.

"It has been an upbeat US trading session and Asia will absorb the leads accordingly," Chris Weston, head of research at Pepperstone, said in a market note.

On Monday the Dow Jones Industrial Average rose 0.89 per cent, the S&P 500 gained 0.72 per cent, and the Nasdaq Composite advanced 1.47 per cent to set a record closing high as investors cheered the manufacturing data.

That data also caused the U.S. Treasury curve to steepen, an indication of improved investor sentiment.

U.S. stocks received an additional lift from Microsoft, which jumped 5.6% after it formally declared interest in buying the U.S. operations of TikTok, a popular video-sharing app owned by Chinese tech company ByteDance.

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U.S. President Donald Trump has threatened to ban TikTok unless its U.S. operations are sold off from ByteDance.

Washington is also preparing to take action against other Chinese software companies that could share user data with Beijing, setting the stage for further conflict.