Concerns about the severity of the Omicron coronavirus variant’s potential impact on the country’s banking and metals sectors dissipated on Tuesday, as Indian stocks ended the day up more than 1%.
The blue-chip NSE Nifty 50 index (.NSEI) and the benchmark S&P BSE Sensex (.BSESN) were both up 1.56 percent as of the closing bell. The Nifty 50 and Sensex have had their best day since September 23.
According to Dr. Anthony Fauci, the top infectious disease official in the United States, Omicron does not appear to have a “high degree of severity.”
The Nifty bank index (.NSEBANK) has risen 2.47 percent since May 21. Private-sector lenders Axis Bank (AXBK.NS) and Kotak Mahindra Bank (KTKM.NS) have emerged as the leading contenders for the acquisition of Citi India’s retail assets.
“The rise in US markets following Fauci’s remarks is one of the major factors driving Indian stocks higher today… Interest rates are expected to remain low as a result of Omicron, according to Siddhartha Khemka, head of retail research at Motilal Oswal Financial Services.
Hindustan Copper Ltd (HCPR.NS) and National Aluminium Co Ltd (NALU.NS) gained 10.1 percent and 7.1 percent, respectively, on the Nifty metal index (.NIFTYMET). According to media reports, both companies are expected to be sold soon by India’s disinvestment department.
Tata Steel (TISC.NS) and Steel Authority of India Ltd. (SAIL.NS), India’s state-owned steelmaker, both saw their shares rise by 3.61 percent and 4.7 percent, respectively.
Investors expect the Reserve Bank of India to hold interest rates steady in its policy announcement on Wednesday.
