NEW DELHI: Domestic equity indices saw a gap up opening to Tuesdays session, tracking gains in global markets as some factories in China opened despite coronavirus deaths continued to mount.The total number of deaths in China has topped 1,000, well past the toll from Severe Acute Respiratory Syndrome, which killed nearly 800 worldwide.BSE flagship Sensex rose 439 points to 41,418.64 while NSE benchmark Nifty added 111 points to 12,142.
Broader market indices were faring in-line with their headline peers as Nifty Smallcap gained 0.70 per cent to 6,221 while Nifty Midcap jumped 0.63 per cent to 18,306.
Nifty 500 advanced 0.83 per cent to 10,028.Factors driving D-Street rallyFirm global cues: Traders took positives from the gains in the US and Asian markets.
On Tuesday, most Asian markets were up.
MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.9 per cent, with Shanghai blue chips ahead by 0.8 per cent.US stocks closed higher overnight boosted by heavyweight technology shares.
The Dow Jones Industrial Average increased 174.31 points, or 0.60 per cent, to 29,276.82 on Monday.
The S-P 500 increased 24.38 points, or 0.73 per cent, to 3,352.09.
The Nasdaq Composite Index was up 107.88 points, or 1.13 per cent, to 9,628.39.
Another relief from RBI: The Reserve Bank on Monday said the special lending window with CRR exemption will be open from February 14 and incremental loans disbursed under this facility will have CRR exemption for the next five years.
This means that banks will not be needed to make additional cash reserve ratio against any incremental loans disbursed to the targeted segments.This should incrementally benefit margins as the CRR has negative carry of 25-35 bps.
Banks should be encouraged to pass benefits to end-consumers and push credit growth.
However, growth in these segments will also depend on underlying demand, CLSA said.Following the announcement, banks led the rally on Tuesday.
Nifty Bank jumped 1.27 per cent to 31,452.
All constituent of the index were in the green.
Market at a glanceAll sectoral indices on NSE were trading with gains in early trade.
Nifty Metal that fell 3 per cent on Monday, was the biggest gainer, adding 1.43 per cent.
Among other big gainers were Nifty PSU Bank, Nifty Auto and Nifty Bank.All 30 stocks in the Sensex were trading in the green.
ITC was the biggest gainer, up 1.9 per cent at Rs 214.90.
Tata Steel followed with gains of 1.83 per cent at Rs 451.
Ultratech Cement, SBI, Hero Moto and Axis Bank were among other gainers in the pack.India VIX, the measure of volatility in the market, dipped 3.18 per cent to 13.75.
This means market participants expect relatively lower volatile movement going ahead.