Sensex, Nifty Rise On Slowing Coronavirus Cases, HDFC Bank Boost

Domestic share markets rose on Tuesday as a slowdown in daily coronavirus cases raised hopes that the government will further ease restrictions, with HDFC Bank supporting the gains after an upbeat forecast from a ratings agency. At 12:06 pm, the Sensex traded 275.88 points - or 0.68 per cent - higher at 40,707.48 while the Nifty was up 67.70 points - or 0.57 per cent - at 11,940.75. COVID-19 cases in India are decreasing after a peak in mid-September, with the world's second-worst affected country reporting a near three-month low of 46,790 new infections in the last 24 hours.

"Declines in daily COVID-19 cases and deaths has given some comfort that there could be further relaxations to the economy," said Siddharth Purohit, an analyst at SMC Institutional Equities.

Shares of HDFC Bank rose as much as 1.4 per cent after ratings agency S&P said the lender's asset quality over the next two years would remain superior to the industry despite likely deterioration from the pandemic.

The Nifty IT index was up 1.7 per cent, as heavyweights Wipro, Infosys, and Tata Consultancy Services gained between 1.1 per cent and 1.3 per cent.

The Nifty Bank index was on track to snap two straight sessions of gains, dipping 0.4 per cent on losses in Bank of Baroda and Bandhan Bank.

Shares of Britannia Industries slipped as much as 5.2 per cent to their lowest in almost a month after it reported quarterly revenue that missed estimates.

Meanwhile, Asian stocks dipped as investors adjusted their risk exposure ahead of the Tuesday stimulus bill deadline set by US House Speaker Nancy Pelosi.

Global events will play a bigger role going ahead and poses a risk to domestic markets, Mr Purohit said.