Sensex Surges 1200 Points, Bank Nifty Jumps 2.8% As Bond Yields Drop

Benchmark indices surged in trade after US markets saw solid closings on the back of falling US Bond Yields. The Dow rallied nearly 2.7%, or about 765 points, to close at 29,490.89. The benchmark had the best day since June 24, 2022. The S&P 500 too advanced about 2.6% to 3,678.43 in its best day since July 27.

The sharply higher closings across the US propelled Asian markets higher, with the Japanese Nikkei gaining about 2.5%. The other Asian markets too traded higher. The Sensex gained a huge 1200 points in trade, while the Nifty was up 363 points in trade, after Monday's sell-off.

Among the gainers in the Indian markets were stocks from the banking and IT Space. Stocks that were the top gainers from the Nifty pack were IndusInd Bank, Adani Ports, HeroMoto Corp and Bajaj Finance.

Shares in KEC rallied 4% after the company secured orders worth Rs 1,407 crore across segments. NCC too saw its shares gained ground after the company received a new order for Rs 393 crore in September, which related to its building division.

Banking stocks were in the limelight after some massive selling pressure seen on Monday. The Bank Nifty was up 2.84% in trade today. Meanwhile, markets would be closed on Wednesday for a festival. However, volatility is expected to continue in the coming days.