Sensex up 200 points, Nifty opens above 12,100; Cummins, Zee, ICICI Bank gain

Mumbai: Indian equity indices opened on Wednesday (January 29) with a positive note amid worries that Coronavius would drag world economic growth. The Sensex was up 191.14 points or 0.47% at 41158.00, while the Nifty up 60.40 points or 0.50% at 12116.20. Major gainers on the indices were Cummins, Zee Entertainment, ICICI Bank, Maruti Suzuki, Tata Steel, Vedanta, JSW Steel, and Tata Motors, while TCS, Dr Reddy's Lab, HDFC and Eicher Motors were among top losers.

On Tuesday, the Sensex closed below the 41,000 mark as market sentiments were dampened on worries that the Coronavius would drag world economic growth. The Sensex closed 188.26 points lower at 40,966.86, while the Nifty closed at 12,060.25, lower by 58.75 points. All the sectors ended in red except IT and realty. Metals continued to be the biggest loser followed by auto and media.

Meanwhile, Asian shares erased earlier gains on Wednesday, swinging into negative territory as a spike in new Chinese virus cases sent Hong Kong stocks tumbling and fuelled fears about the economic impact of the outbreak.

MSCI`s broadest index of Asia-Pacific shares outside Japan skidded 0.52%. Hong Kong shares fell 2.8% on their first session after a two-and-a-half trading daybreak for Lunar New Year, led by declines in financial services, real estate, and consumer goods companies.

However, Australian shares rose 0.57%, while Japan`s Nikkei stock index advanced 0.4%, partly because investors in these markets have already had a chance to react to the virus outbreak, which has claimed more than 100 lives.

Oil futures built on gains in Asia after OPEC sources said the cartel wants to extend crude output cuts by three months to June, easing concern about excess supplies.

US stock futures rose 0.14% in Asia on Wednesday. The S&P 500 rose 1.01% on Tuesday, rebounding from its worst daily decline in four months on Monday, as shares of Apple Inc rose ahead of its fourth-quarter results.

After the market close, Apple reported better-than-expected profits for the fourth quarter and forecast revenue in the current quarter above Wall Street expectations, which lifted some Asian tech shares.

The yield on benchmark 10-year Treasury notes rose to 1.6666% versus a yield of 1.5821% on three-month Treasury bills in another sign that sentiment has stabilised. 

The yield curve briefly inverted on Tuesday when 10-year yields fell below their 3-month counterparts for the first time since October. An inverted yield curve has historically been an indicator of looming recession.

Markets in Asia are likely to be subdued before the US Federal Reserve meeting later on Wednesday. The Fed is expected to reiterate its desire to keep rates unchanged at least through this year.

In currency markets, the safe-haven yen was quoted at 109.22 per dollar following a 0.2% loss on Tuesday. The Swiss franc, another popular safe-haven, traded at 0.9740 versus the dollar, close to its lowest in almost three weeks.

(With Agency Inputs)