Sensex, Nifty Extend Gains For Second Day
(RTTNews) - Indian shares ended a choppy session higher for the second day running on Tuesday after the Reserve Bank of India decided to transfer Rs 1.76 lakh crore from its reserves and surplus to the government.
Analysts said the move will help the government meet its tax revenue shortfall and fund a higher expenditure at a time when the economy is slowing down.
Positive global cues also lent some support after U.S. President Donald Trump flagged the possibility of a trade deal with China, saying he believed Beijing was sincere in its desire to reach an agreement.
Trump's comments helped temper sharp losses in global equity markets, though analysts remain doubtful that trade talks have really turned a corner.
Trump told reporters at the G-7 summit that top Chinese officials had called asking for the resumption of trade talks and prospects for a deal were better now than at any time since talks began last year.
Closer home, the benchmark S&P BSE Sensex ended the session up 147.15 points, or 0.39 percent, at 37,641.27. while the broader NSE Nifty index rose by 47.50 points, or 0.43 percent, to 11,105.35.
Tata Motors soared almost 9 percent after a company spokesperson said the current challenging market situation will likely improve gradually in the coming months.
Britannia Industries jumped 6.7 percent after reports that it plans to double turnover of its dairy verticals over the next two to three years.
Shares of HDFC Asset Management Company hit a 52-week high before ending 6.7 percent higher for the day.
NTPC, Yes Bank and Tata Steel climbed 3-4 percent while Indiabulls Housing Finance, Bharti Airtel, Tech Mahindra and Grasim Industries dropped 2-4 percent. Infosys lost 2.1 percent after closing a share buyback offer.