Sensex recovers on global cues, Trump anxiety subsides
Asian markets recovered after some of the anxiety about U.S. President Donald Trump’s ability to push his agenda subsided.business Updated: Mar 28, 2017 16:23 IST
Indian shares gained on Tuesday as losses in the previous session were seen as overdone, with sentiment also improving as Asian markets recovered after some of the anxiety about U.S. President Donald Trump’s ability to push his agenda subsided.
But broader gains are likely to be capped in the near term as India approaches the earnings season starting next month, analysts said.
Global factors will also continue to play a role as many of the recent gains have been predicated on Trump implementing massive stimulus measures to boost the U.S. economy.
“Markets are waiting for the results season. Structurally, we have got most of the reforms getting in place and things are positive on the political front. Only concern is higher valuation levels. That makes the upcoming earnings all the more crucial,” said Siddharth Sedani, vice president, equity advisory at Anand Rathi.
The broader NSE Nifty was up 0.61% at 9,102.20 by 0638 GMT, while the benchmark BSE Sensex was 0.58% higher at 29,406.14.
Among gainers, IT and drug makers recovered from losses in the previous two sessions with HCL Technologies up 1.7 percent and Aurobindo Pharma Ltd climbing 1.6 percent, leading gains in these sectors respectively.
Telecom tower company Bharti Infratel surged as much as 3.63% after global private equity investor KKR & Co LP and Canada Pension Plan Investment Board bought a 10.3% stake in the company for more than 61.9 billion rupees.
Meanwhile, Dishman Pharma soared as much as 20% to an all-time high after company’s partner Tesaro Inc got the U.S. Food and Drug Administration’s nod for an ovarian cancer drug.