Sensex rallies 700 points, Nifty up by 2% after US approves $2 trillion stimulus
BSE Sensexclimbed 700 points and was up at 27,115 points. Nifty50rallied towards the 8000 mark and stood at 7,735.
- This came after Senate leaders and the White House reached a deal on a roughly $2 trillion economic stimulus.
- US stocks rose sharply on Tuesday (March 24) with the Dow up more than 11%, notching its biggest one-day percentage gain since 1933 amid stimulus hopes.
In a speech on the floor following the deal, Senate Majority Leader Mitch McConnell said the bill would inject trillions into the economy and would include checks for Americans, calling it a "wartime level of investment for our nation."
"We have a bipartisan agreement on the largest rescue package in American history," Senate Minority Leader Chuck Schumer said. "This is not a moment of celebration but one of necessity."
US Stocks rallied; marking biggest one-day percentage gain since 1933
This came after US stocks rose sharply on Tuesday (March 24) with the Dow up more than 11%. This is the biggest one-day percentage gain since 1933, which came amid stimulus hopes.
All the 11 primary S&P 500 sectors closed noticeably higher, with energy up 16.31%, outpacing the rest.
Investors hoped US lawmakers were close to an agreement on a massive economic relief package to cushion the damage by the COVID-19 pandemic.
Tuesday’s historic rally followed Wall Street’s yet another setback in the previous session, with the 30-stock index finishing down nearly 600 points despite the Federal Reserve’s decisive efforts.
On Monday, the US central bank announced a plan to purchase US treasuries and agency mortgage-backed securities with no limit to help markets function more efficiently amid
Indian equities can also be influenced by Modi’s 21-day lockdown
Last night (March 24), Prime Minister Narendra Modi announced a 21-day nationwide lockdown to contain Coronavirus.
“If we do not adhere to the 21-day lockdown, the next 21 years will be affected. And many families will be destroyed,” he said, insisting that even he himself practices social distancing.
The government also arranged a fund of ₹15,000 crore to procure essential medical items like ventilators, quarantine facilities, personal protective equipment, isolation beds, ICU beds, ventilators and other essential requirements.