Sensex, Nifty spurt over 2 pc as India begins to unlock economy

Sensex rallied in early trade led by gains in HDFC twins, ITC and Reliance Industries amid positive cues from global markets.
Sensex rallied

Mumbai, Jun 1 (PTI) Market benchmark index Sensex on Monday rallied 879 points on heavy buying in financial, FMCG and energy stocks as the government starting the process to unlock the economy boosted investor sentiment.

Positive cues from the global markets also helped the key equity indices extend gains for the fourth session in a row.

After skyrocketing 1,250 points during the day, the 30-share BSE Sensex settled 879.42 points or 2.57 per cent higher at 33,303.52.

The NSE Nifty surged 245.85 points or 2.57 per cent to finish at 9,826.15.

Bajaj Finance was the top gainer in the Sensex pack, rising around 11 per cent, followed by Titan, Tata Steel, SBI, M&M, HDFC, IndusInd Bank and Reliance Industries.

On the other hand, Sun Pharma, Nestle India and UltraTech Cement were among the laggards.

All sectoral indices ended on a positive note with BSE consumer durables rallying 6.56 per cent, followed by metal, finance, bankex, energy, auto and realty indices.

“Domestic shares zoomed at opening and stayed strong throughout the day as investors ignored fourth-quarter GDP data and reacted positively to the government’s decision to come up with a phased re-opening of all activities outside containment zones beginning June 1,” Paras Bothra, President of Equity Research, Ashika Stock Broking, said.

Positive sentiments also supported after US President Donald Trump stopped short of specifying tough sanctions over China’s new national security law for Hong Kong and Chinese PMI data showed fresh signs of economic recovery, he added.

“The market further rallied in the afternoon session with much broad-based buying seen in both large and mid cap stocks tracked by respective indices,” Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi, said.

Broader midcap and smallcap indices surged up to 3.03 per cent.

The home ministry on Saturday said ‘Unlock-1’ will be initiated in India from June 8 under which the nationwide lockdown effectuated on March 25 will be relaxed to a great extent, including opening of shopping malls, restaurants and religious places.

“Buoyant Asian and European markets helped sentiments. Volumes were also healthy suggesting high delivery activity. Financials, Materials and Auto stocks did well while Pharma stocks came under selling pressure,” Deepak Jasani, Head Retail Research, HDFC Securities, said.

Asian shares advanced to three-month highs on Monday as progress on re-opening economies helped offset jitters over riots in the US cities and unease over Washington’s power struggle with Beijing.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul settled up to 3 per cent higher, and those in Europe opened with significant gains.

International oil benchmark Brent crude futures were trading 0.21 per cent higher at USD 37.91 per barrel.

On the currency front, the rupee appreciated 8 paise to provisionally close at 75.54 against the US dollar.

India is likely to receive 102% rainfall of a long-term average this year, the IMD said on Monday in its 2nd long range forecast, raising expectations for higher farm output in India, which is reeling from the new coronavirus pandemic.

The number of coronavirus cases in India crossed 1.90 lakh and the death toll climbed to 5,394, as per the health ministry data.

Globally, the number of cases linked to the disease has crossed 61.66 lakh and the deceased tally stood around 3.72 lakh.

Source: PTI

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