Stock markets rebound as India-US trade talks resume; Sensex jumps 595 points, Nifty up by 170

Stock markets on Tuesday bounced back with the benchmark Sensex climbing nearly 595 points on renewed optimism following the resumption of trade talks between India and the United States reported news agency PTIThe 30share Bombay Stock Exchange BSE Sensex surged 59495 points or 073 per cent to settle at 8238069 driven by buying in auto and Information Technology IT stocks During the day it had touched a high of 8244348 up 65774 points or 080 per centMeanwhile the 50share National Stock Exchange NSE Nifty rose 16990 points or 068 per cent to reach 2523910 reported PTIOn Monday the Sensex had slipped 11896 points or 015 per cent to settle at 8178574 after five days of gains Meanwhile Nifty fell 4480 points or 018 per cent to 2506920 bringing an end to eight consecutive day of gainsChief negotiators of India and the US have begun discussions on a proposed trade agreement to resolve issues arising from steep tariffs that have created uncertainty for exporters an official saidA rally in Asian and US markets also boosted domestic sentiment ahead of this weekrsquos Federal Reserve policy meeting reported PTIAmong the stocks in BSE Kotak Mahindra Bank emerged as the biggest gainer rising 255 per cent Larsen amp Toubro Mahindra amp Mahindra Maruti Bharti Airtel and Tata Steel were among the other major gainersHowever Asian Paints and Bajaj Finance ended in the red reported PTIldquoThe domestic market sustained its recovery trend supported by favourable global cues on expectations of a 25 bps rate cut in the forthcoming US Fed policy decision and renewed optimism surrounding the resumed IndiaUS trade negotiations Auto and consumer durable stocks outperformed ahead of the rollout of new GST rates and festivedriven demand expectationsrdquo Vinod Nair head of research Geojit Investments Limited saidThe BSE smallcap index rose 066 per cent while the midcap index gained 062 per centAmong the sectoral indices services jumped the most at 167 per cent followed by telecommunication 150 per cent auto 143 per cent tech 105 per cent industrials 105 per cent realty 102 per cent consumer discretionary 096 per cent and commodities 090 per centFastmoving consumer goods FMCG was the only laggardldquoThe rally was driven by strong gains in auto realty and financial stocks as optimism grew around ongoing IndiaUS trade talks and expectations of a US Federal Reserve rate cut later this weekrdquo Gaurav Garg Research Analyst Lemonn Markets Desk said adding ldquoGlobal cues also remained supportive with investors betting on a 25basispoint cut by the Fed in its policy meeting concluding September 17rdquoldquoIndian benchmark indices on Tuesday traded higher in line with Asian peers as investors took comfort from progress in US trade talks Market participants now await the US Federal Reserversquos policy decision for further cuesrdquo Bajaj Broking Research notedIn Asia South Korearsquos Kospi Japanrsquos Nikkei 225 and Shanghairsquos SSE Composite ended higher while Hong Kongrsquos Hang Seng closed lowerEuropean markets were trading lower and US indices ended higher on MondayMeanwhile global oil benchmark Brent crude slipped 055 per cent to USD 6707 a barrelForeign institutional investors FIIs sold equities worth Rs 126859 crore on Monday exchange data showedWith PTI inputs