D-street Indices Rise As Banking Crisis Seems To Ease

Indian shares closed higher on Tuesday, as financial stocks surged as investors digested series of measures to stabilise the global banking sector.

The Nifty 50 index closed 0.70 per cent higher at 17,107.50, while the S&P BSE Sensex jumped 0.77 per cent to 58,074.68 in their biggest one-day gains since the collapse of Silicon Valley Bank on 10 March.

“Markets rebounded as the street cheered positive global cues on the back of constructive global banking sector development. While the market is eyeing the Fed meet on interest rate, risk flow too is seen returning,” said Prashanth Tapse, Senior VP (Research), Mehta Equities.

Nine of the 13 major sectoral indexes advanced with the high-weightage financials rallying nearly 1.5 per cent.

Information technology stocks fell nearly 1 per cent on fears that the banking woes in developed markets could lead to tighter tech spending.

Among individual stocks, Reliance Industries advanced over 3 per cent. 

Larsen and Toubro rose 1.42 per cent after the engineering and construction company bagged major orders.