Sensex recovers 693 pts amid govt measures to aid coronavirus-hit economy

Mumbai: A day after the historic rout, equity benchmark Sensex bounced back to close 693 points higher on Tuesday as investors noted governments across the world taking prompt economic measures to offset the financial damage from the Covid-19 pandemic.

Indian equities followed an improved investor sentiment in Asia after the Federal Reserve announced limitless bond-buying programme to support the US economy.

Meanwhile, Indian Finance Minister Nirmala Sitharaman said an economic package to help through the coronavirus lockdown was in works even as fresh cases of virus spread reported from various parts of the country.

After gyrating 1,823.97 points, the BSE barometer gave up some gains to end 692.79 points or 2.67 per cent higher at 26,674.03. It hit an intra-day high of 27,462.87 and a low of 25,638.90.

Similarly, the NSE Nifty settled 190.80 points, or 2.51 per cent, down at 7,801.05.

Top gainers in the Sensex pack included Infosys, Bajaj Finance, Maruti, HUL, HCL Tech and Reliance Industries, while M&M, IndusInd Bank, ITC, PowerGrid and L&T were among the losers.

The US Fed is now leading from the front with its historic package which includes open-ended purchase of securities, direct loans to companies, purchase of corporate bonds, lending against student loans and credit card loans, they said.

The Federal Reserve on Monday announced it will buy unlimited amounts of US Treasury debt essentially printing money for the economy as well as new steps to lend directly to small- and medium-sized companies that have been among the hardest-hit as economic activity dries up.

The number of global Covid-19 infections has shot past 3,80,000. Worldwide fatalities topped 16,500.