US Market rebounds on bargain hunting

The US stock market finished higher on Tuesday, 22 September 2020, with two of the three major averages snapping four days of losing streak, as the recent market pullbacks triggered a bargain buying opportunity for growth companies in the US. However, market gains capped as a likely delay in new fiscal stimulus by the United States Congress and concerns about faster economic recovery after an increase in the number of coronavirus cases.

At closing bell, the Dow Jones Industrial Average index advanced 140.48 points, or 0.52%, to 27,288.18. The S&P 500 index grew by 34.51 points, or 1.05%, to 3,315.57. The tech-heavy Nasdaq Composite Index added 184.84 points, or 1.71%, to 10,963.64.

Seven of the 11 major S&P 500 sector indexes closed higher, led by information technology and consumer discretionary.

Shares of megacap technology stocks which have suffered brunt of declines in September all closed in positive territory on Tuesday. Microsoft Corp, Apple Inc, Alphabet Inc, and Facebook Inc all rose more than 1.6%. They had carried the brunt of recent declines.

ECONOMIC NEWS: US Existing Home Sales Climb To Highest Level In 14-Years In August-- US existing home sales jumped 2.4% to an annual rate of 6.000 million in August after skyrocketing by 24.7% to a rate of 5.860 million in July, according to a report released by the National Association of Realtors on Tuesday. With the sharp increase, existing home sales reached their highest level since December of 2006. The report said the median existing-home price for all housing types in August was $310,600, up 11.4% from $278,800 in August of 2019. NAR said total housing inventory at the end of August totaled 1.49 million units, down 0.7% from July and down 18.6% from one year ago. The unsold inventory represents 3.0 months of supply at the current sales pace, down from 3.1 months in July and down from 4.0 months in August of 2019.

Among Indian ADR, Wipro added 0.63% to $4.76, INFOSYS added 1.69% to $13.84, HDFC Bank rose 0.37% to $48.27, ICICI Bank was up 0.2% to $9.73, and Dr Reddys Labs was up 0.33% to $70.01. WNS Holdings dropped 2.01% to $62.47, Azure Power Global declined 6.51% to $30.31, Tata Motors fell 2.36% to $9.11, and Vedanta fell 0.29% to $6.90.

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