Sensex jumps over 900 points, metal stocks post strong gains

Benchmark indices rallied for the second consecutive day on Tuesday to erase all Budget-day losses with investors opting for value buying amid positive global cues and declining oil prices.

Oil prices have dropped sharply amid fears of lower demand after many countries cancelled all flights to China due to coronavirus. Brent crude futures rebounded to 55 dollars a barrel during the day. India imports 85 per cent of its oil requirement.

At the same time, China said it will welcome assistance from the United States to fight the coronavirus outbreak, as the death toll in China exceeded 425.

At the closing bell, the BSE S&P Sensex was up by 917 points or 2.3 per cent to 40,789 while the Nifty 50 ticked up by 272 points at 11,980.

All sectoral indices at the National Stock Exchange were in the green with Nifty metal up by 3.3 per cent, financial service by 2.8 per cent, realty by 2.7 per cent and IT by 1.8 per cent.

Among stocks, Titan emerged as a star of the day with 7.3 per cent spurt at Rs 1,273 per share after reporting 13 per cent year-on-year rise in standalone profit at Rs 470 crore for the December quarter.

Metal majors Hindalco and Tata Steel gained by 4 per cent and 3.7 per cent respectively while Bharti Infratel moved up by 5.6 per cent.

Oil marketing firms IndianOil Corporation, Bharat Petroleum Corporation and GAIL edged higher by 5.6 per cent, 4.3 per cent and 3.8 per cent respectively.

Index heavyweight Reliance Industries soared by 2.9 per cent at Rs 1,425.85 per share after announcing that its joint venture with British multinational oil and gas company BP Plc has completed the safe cessation of production in a planned manner from the D1 D3 field in block KG D6 off the east coast of India.

However, Zee Entertainment plunged by 5.3 per cent after the Ministry of Corporate Affairs (MCA) reportedly ordered an inspection of the company's financials.

Bajaj Auto fell by 3.7 per cent on poor January sales while Yes Bank dipped by 2.8 per cent to Rs 35 per share. The other prominent losers included Eicher Motors and Hindustan Lever.

Meanwhile, Asian stocks bounced, although market sentiment remained fragile, with Chinese officials making efforts to calm coronavirus fears. China's central bank has flooded the economy with cash while trimming some key lending rates.

Japan's Nikkei inched up by 0.49 per cent while Hong Kong's Hang Seng ticked up by 1.21 per cent and South Korea's Kospi index by 1.84 per cent.

Shanghai composite too gained by 1.34 per cent, a day after China's markets witnessed an erosion of about 400 billion dollars in market value from Shanghai's benchmark index following anxiety over the spreading coronavirus.

( With inputs from ANI )