Sensex opens above 200 points, Nifty goes beyond 10,400 mark

Benchmark indices, Sensex and Nifty opened higher on Tuesday. After ending in red over four consecutive days on Monday, indices opened on positive note taking cues from Asian shares.

The BSE Sensex opened 259.84 points higher at 34,006.62 while Nifty opened at 78.60, reclaiming its 10,400 mark.

The shares of the Indian Energy Exchange (IEX), country’s largest power trading platform, would be in focus today as the it is looking at launching a spot gas exchange for trading of natural gas produced by marginal fields.

Meanwhile, Asian share regained some ground on Tuesday after U.S. President Donald Trump faced growing pressure from political allies to pull back from proposed steel and aluminium tariffs, easing investor worries about an imminent trade war.

Sentiment was also supported by receding risk aversion in Europe with the euro gaining support from the creation of a coalition government in Germany and the impact of Italy's inconclusive election results limited to a mild sell-off in domestic bonds and stocks.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.3 percent while Japan's Nikkei jumped 2.3 percent, a day after it hit a five-month low.

Korean shares have erased all the losses they had taken after Trump's announcement even though the country is seen as being among the worst affected in region by the tariffs due to its big steel exports to the United States.

MSCI's broadest gauge of the world's stock markets rose 0.3 percent after having snapped a four-day losing streak on Monday with a gain of 0.7 percent.

Wall Street shares have now recouped all the losses incurred after Trump unveiled a plan to impose tariffs on steel and aluminium late on Thursday.

Leading Republicans, including House of Representatives Speaker Paul Ryan and Representative Kevin Brady, turned up the pressure on Trump to rethink the plan on Monday.

Some investors also saw the tariffs threats as a U.S. negotiating tactic to get a better deal on NAFTA.Still, uncertainty remains with confusion about the timing and extent of the planned tariffs inside the White House. Trump said on Monday he would not back down, without elaborating.

Trump was expected to finalise the planned tariffs later in the week, although some observers familiar with the process said it could occur next week.

Bombay Stock Exchange - BSE

National Stock Exchange of India Ltd (NSE)