On Tuesday, the domestic indices were found trading marginally higher, taking cues from their key Asian counterparts.
Among all the sectoral indices, the Nifty PSU Bank Index was above 3% led by a rise in the shares of IDBI bank, Union Bank of India and Bank of India.
At the first policy meeting under new Fed chief Jerome Powell, the US central bank showed that inflation should finally become higher after years below it’s 2% Target and that the economy had currently gained momentum.
Asian share markets rose sharply on Tuesday as reports of behind-the-scenes talks between the United States and China rekindled hopes an affecting trade could be averted, which would result in shaping the strength of the dollar and yen.
Japan’s Nikkel raised 1.7 percent and China blue chips gained 1.2 percent. The MSCI’s broadest index of Asia-Pacific shares outside Japan rose nearly one percent. South Korea’s KOSPI raised 0.7 percent, adding to profits made after the US exempted the country’s steel from import tariffs.
The abrupt mood swing came amid states Chinese and US officials were busy negotiating to avert an all out trade war.
On Monday, the Dow jumped 2.84 percent, while the S&P 500 climbed 2.72 percent and the Nasadaq 3.26 percent.
The investors will look forward to the fiscal deficit data to be released on Wednesday.