Share Market Update: Sensex Jumps Over 400 Points, Nifty Crosses 11,600; Financial Stocks Jump

Stock Market Updates: Stock markets rose on Monday on hopes that President Donald Trump could be discharged from hospital later in the day, easing some of the political uncertainty that shook global bourses in the previous session.

Share Market Update: Sensex Jumps Over 400 Points, Nifty Crosses 11,600; Financial Stocks Jump

TCS, Infosys and ICICI Bank were the top contributors to the gain in Sensex

Domestic stock markets started Tuesday's session on a positive note, rising for the fourth day in a row, as Asian equities climbed to a two-week peak. The S&P BSE Sensex index rose 400.87 points - or 1.03 per cent - to touch 39,374.57 at the strongest level in early deals, and the broader NSE Nifty 50 benchmark began the day at 11,615.30, up 111.95 points - or 0.97 per cent - from its previous close. Gains in banking and financial services shares pushed the markets higher. 

At 9:36 am, the Sensex traded 306.02 points - or 0.79 per cent - higher at 39,279.72, while the Nifty was up 84.10  points - or 0.73 per cent - at 11,587.45.

HDFC, Tata Motors, Adani Ports, UPL and Asian Paints, trading between 2.22 per cent and 4.43 per cent higher, were the top gainers in the Nifty basket of 50 shares. 

On the other hand, Wipro, Infosys and TCS, down 1.06-1.90 per cent each, were the worst hit among 11 laggards in the index.

HDFC, HDFC Bank and ICICI Bank were the biggest boosts to Sensex.

On Monday, the government said it will extend a surcharge on taxes on luxury goods, including cars and tobacco products, beyond 2022, under plans to help states repay loans raised to meet revenue shortfalls in the current fiscal year. The next meeting of the GST Council is slated for October 12.

Earlier, the Supreme Court said the Centre's affidavit on waiving "interest on interest" on loans up to Rs 2 crore was not satisfactory and asked for a do-over in a week. The affidavit "fails to deal with several issues raised by petitioners", the top court said, listing the matter for next hearing on October 13.

Meanwhile, analysts awaited corporate earnings and details on the RBI's upcoming bi-monthly review for cues. 

The government named three new nominees on the central bank's Monetary Policy Committee (MPC) late on Monday, days after the Reserve Bank of India was forced to delay the bi-monthly committee meeting as it required at least four MPC members to proceed.

The RBI said last week the dates of the rescheduled MPC meeting would be announced shortly.

Tata Consultancy Services (TCS) was due to report its financial results for the July-September period on Wednesday.

Shares in other Asian markets rose to their highest levels in two weeks on Tuesday after US President Donald Trump was discharged from hospital following treatment for COVID-19 and as prospects for a fresh US stimulus package appeared to brighten.

Mr Trump returned to the White House on Monday after a three-night hospital stay and said he felt "real good", though one of his doctors cautioned that he may not be out of the woods yet.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.71 per cent to a two week-high, led by Hong Kong climbing 0.88 per cent. Japan's Nikkei also added 0.41 per cent.