The Sensex rose more than 1,400 in the opening session on Tuesday after the US Federal Reserve announced an unlimited bond purchase program to support the US economy. A similar trend was seen in other Asian markets. Traders said that the sentiment of investors in Asia improved due to the possibility of increased demand in the US. However, after the BSE Sensex recorded a gain of 1,481.63 points, the index saw a decline and by the time of writing the news was trading at 26,424.51, up by 443.27 points or 1.71 percent.
Similarly, the NSE Nifty was trading at 7,775.80, up 165.55 points or 2.18 per cent. The biggest losers in the Sensex were IndusInd Bank, Titan, L&T, Tata Steel, Asian Paint and ICICI Bank, while shares of HCL Tech, HUL, Infosys and Tech Mahindra were up.
The Sensex lost 3,935 points or 13.15 percent to close at 25,981.24 in the previous session, while the NSE Nifty lost 1,135.20 points or 12.98 percent to 7,610.25. According to VK Vijayakumar, chief investment strategist at Geojit Financial Services, the US central bank Federal Reserve is now coming forward from the front with its historic package.
He said, "This comprehensive package for Wall Street and other stock markets is unprecedented and gives the message that the world's largest central bank will be formed to mitigate the economic crisis." Banks are expected to take such bold measures to reduce the stress of debt and financial markets.
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