a) The Indian markets jumped nearly 9 per cent on Tuesday amid global optimism that the spread of the coronavirus is slowing down.
b) Most global markets rallied sharply for the second day in a row after investor sentiment improved following-
- encouraging signs from key global hotspots, and
- comments from President Donald Trump that the pandemic was beginning to level off in the US.
c) The Sensex closed at 30,067, up 2,476 points, or 9 per cent, while the Nifty rallied 708 points or 8.7 per cent, to end at 8,792 — the biggest single-day gains for both the indices since May 2009.
d) The strong rally was underpinned by buying by overseas investors. On Tuesday, foreign portfolio investors (FPIs) turned net buyer after many months, buying shares worth Rs 740 crore. While the absolute amount was relatively small, market players said the positive number was a huge sentiment booster.
“Until a few days ago, the markets closely tracked the change in daily new cases, but they are now focusing on the rate of change of daily new cases, which is decelerating,” Abhiram Eleswarapu, head of equities, BNP Paribas India, said.
e) A note by Morgan Stanley stating that the recent changes in FPI investment limit could attract as much as $7 billion in foreign inflows also boosted sentiment.