Stock Market Update: Nifty hits 18200, Sensex advances 126 points to end at 61100

Stock Market Update: The recovery in financials following positive quarterly updates and expectations of a liquidity surplus in the banking system helped Indian shares turn around their declines and move higher on Tuesday.

IT stocks and Nifty

After a shaky start, the majority of the key sectors indices turned positive, with the high weighted financials climbing by 0.4% and the IT stocks gaining more than 0.5%. 35 of the Nifty 50 constituents saw gains on the day.

Stock Market Update: Financial companies

Financial companies CSB Bank, South Indian Bank, and Karnataka Bank all saw gains of between 5% and 6.5% following solid quarterly updates in which they also revealed an increase in deposits according to the Stock Market Update.

In advance of the quarterly earnings period, that was good news. In the foreseeable future, according to Profitmart Securities' head of research Avinash Gorakshakar, "earnings for the December quarter will boost the markets."

India's banking system liquidity

Additionally, traders anticipated that the liquidity of the Indian banking system will report a surplus in the first two weeks of January after falling to a deficit for the first time in more than three and a half years in the final two weeks of December.

High government spending, according to analysts, will help the system's liquidity. They also noted that banks' prospects are still favourable due to strong credit growth and improving asset quality.

Stock Market Update: From China

As concerns about a quick spread of COVID-19 cases weighing on global growth were stoked by bad economic data from China, both Indian equity indexes had already declined more than 0.25%.

However, most Asian markets ignored those worries in order to bounce back from a dismal opening. The MSCI Asia ex-Japan index most recently gained 0.49%.

Stock Market Update: Federal Reserve meeting

The latest Federal Reserve meeting's minutes, which are due on Wednesday, could make the upcoming sessions more volatile, according to analysts.

Following the resignation of the co-founder and chief technological officer of the food delivery company, Zomato Ltd. fell approximately 2% among individual stocks.

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