The Nifty rose 2.16 per cent to 10,021.55 by 0346 GMT, while the Sensex was up 2.11 per cent at 3,922.77.

Financial stocks rallied in early trade with the Nifty banking index surging over 3.2 per cent. (Photo: Reuters)

HIGHLIGHTS

  • Indian shares opened stronger on Tuesday
  • Sensex, Nifty rose above 2 per cent in early trade
  • Banking and financial stocks performed well

Indian shares rose on Tuesday, joining a global rally, after the US Federal Reserve’s corporate bond buying programme boosted hopes of liquidity in domestic markets and outweighed concerns about another round of lockdowns in the face of rising COVID-19 cases.

The Nifty rose 2.16 per cent to 10,021.55 by 9:16 am, while the Sensex was up 2.11 per cent at 3,922.77.

The Fed on Monday tweaked its bond buying program to try to make more companies’ securities eligible for a liquidity boost, soothing investors rattled by fears of a resurgence in coronavirus cases worldwide.

The Fed’s announcement helped a late rally on Wall Street on Monday. MSCI’s broadest index of Asia-Pacific shares outside Japan rose over 2 per cent on Tuesday and US stock futures, the S&P 500 e-minis, were up nearly a per cent.

Financial stocks rallied in early trade in Mumbai, with the Nifty banking index surging over 3.2 per cent.

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