The benchmark equity indices on the BSE and National Stock Exchange (NSE) opened around 1 per cent higher on Tuesday as sentiment was high amid a drop in fresh coronavirus (Covid-19) cases in the country and positive cues in the global market.
The S&P BSE Sensex reclaimed the 50,000-mark in the opening deals while the Nifty 50 reclaimed 15,000-levels. At 9:29 am, the Sensex was up 640.42 points (1.29 per cent) at 50,221.15, while the Nifty was trading at 15,116.15, up by 193.00 points (1.29 per cent).
India reported 2.63 lakh cases on Monday and it saw its active cases drop by about 1.65 lakh on Monday, the biggest drop ever. There are now 33.52 lakh active cases in the country. This is the second consecutive day when the fresh cases reported were below the 3 lakh mark. Click here to follow Covid-19 LIVE Updates
HDFC Bank, ICICI Bank, Reliance Industries (RIL), Bajaj Finance and Housing Development Finance Corporation (HDFC) were among the top contributors to the Sensex in early trade.
Among sectors, the key Bank Nifty was trading over 1.5 per cent in the early trade led by gains in the shares of The Federal Bank, IndusInd Bank and Bandhan Bank. The Nifty Financial Services index too was up around 1.5 per cent led by Bajaj Finance, Shriram Transport Finance Company and Muthoot Finance. Apart from these, Nifty Metal index was trading over 2.5 per cent higher aided by Hindustan Zinc, Hindalco Industries and Tata Steel.
In the previous session, Sensex surged 848.18 points (1.74 per cent) to settle at 49,580.73 and Nifty rose 245.35 points (1.67 per cent) to end at 14,923.15.
“The positive trigger for the market now is the steadily declining fresh Covid cases and the steadily rising recovery rates. The latest numbers (2.62 lakh fresh cases and 4.22 lakh recoveries) indicate a continuation of this positive trend. The market is discounting progressive lifting of the widespread lockdowns starting in early June. Even though growth & earnings will be impacted in Q1, smart recovery can be expected in the subsequent quarters,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said in a pre-market statement earlier in the day.
“Sectoral rotation and value buying is pushing up financials particularly banking stocks. The latest trends indicate that the stress in the banking system is not as bad as feared earlier. With progressive unlocking of the economy, credit growth is likely to pick up starting June improving the prospects for frontline financials. Market action is likely to be stock specific in the coming days with the market responding to Q4 numbers and likely trends,” he added.
Asian shares rose on Tuesday, shrugging off worries about an increase in regional coronavirus infections and a subdued session on Wall Street, while inflation jitters helped push gold prices to three-month highs.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.06 per cent after a mixed session on Monday, still not recouping losses of the last few weeks amid new clusters of COVID-19 cases that are prompting some economies to impose fresh anti-virus measures. Japan’s Nikkei rose as much as 2.2 per cent on solid earnings reports and bargain hunting, while Hong Kong’s stocks were up 1.24 per cent. China’s blue-chip CSI300 index was 0.20 per cent lower.
–global market inputs from Reuters