US Market rises on stimulus bets

The US stock market finished session higher on Monday, 27 July 2020, as investors sentiments boosted up on optimism about additional fiscal stimulus after Treasury Secretary Steven Mnuchin statement that Republicans have finalized their new coronavirus relief legislation. Meanwhile, better than expected durable goods orders for June 2020 also underpinned buying.

However, market gains were capped amid concerns over a diplomatic row between the United States and China, escalating COVID-19 cases in southern and western U.S. states and an unexpected rise in U.S. jobless claims last week.

At closing bell, the Dow Jones Industrial Average added 114.88 points, or 0.4%, at 26,584.77. The S&P 500 index rose 23.78 points, or 0.7%, to 3,239.41. The tech-heavy Nasdaq Composite Index grew 173.09 points, or 1.7%, at 10,536.27.

Investors were keeping a close watch on progress over the next round of government aid ahead of enhanced unemployment benefits set to expire on Friday. Senate Republicans were expected to unveil their plans to provide additional coronavirus aid, following disagreements between themselves and the White House on the proposal.

On the economic front, the Commerce Department said durable goods orders surged up by 7.3% in June after skyrocketing by a downwardly revised 15.1% in May. The continued increase comes following the nosedive seen in March and April.

Among Indian ADR, ICICI Bank shed 4.18% to $9.85, Tata Motors dropped 1.16% to $6.79, Dr Reddys Labs was down 1.58% to $53.65, HDFC Bank fell 3.38% to $48.55, and Vedanta declined 1.18% to $5.88, while Wipro added 0.25% to $3.97, INFOSYS rose 2.76% to $12.67, Azure Power Global rose 0.45% to $20.10, and WNS Holdings added 0.23% to $61.42.

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