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Sensex, Nifty rise in stimulus hopes, rise in banks, IT companies
Indian stock markets posted strong gains for the second consecutive day to close at six-week highs, fueled by gains in heavy banking and IT stocks. Expectations of a new stimulus package from the government and higher world markets raised national stock markets. The Sensex closed almost 500 points higher at 31,863, while Nifty jumped 1.4% to 9,313.
Kotak Mahindra Bank Ltd closed with an 8.5% increase, while ICICI Bank rose almost 5%. IT giants Tata Consultancy Services Ltd (TCS) and Infosys Ltd rose approximately 6% each. Both Sensex and Nifty are up approximately 24% from their March 24 lows.
The rupee also made a strong rally today to close 60 paise higher at 76.06 per US dollar. On Tuesday, the Indian market regulator temporarily eased some fundraising regulations for listed entities to give them easier and faster access to capital markets amid the ongoing coronavirus pandemic that has greatly reduced commercial activity.
Oil prices rebounded today, which helped boost equity markets due to renewed tensions between the United States and Iran, but investors remained concerned about uncertain economic prospects despite the coronavirus pandemic showing signs of deceleration.
This is what market analysts said about today’s market action:
Vinod Nair, head of research at Geojit Financial Services.
“Indian benchmarks were trading positive, fueled by finance and IT. Hopes for yet another stimulus package are giving some support to markets. Rising cases of infections are a concern and markets are hoping it will hit. its peak soon will depend on government measures to boost the economy and support industries, once we get out of the shutdown. “
S Ranganathan, Head of Research at LKP Securities
“The market rebounded today led by IT and banking heavyweights. The relaxation in Sebi’s corporate fundraising due to the pandemic also raised sentiments on the street today.”
Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi shares
“Indian markets opened with positive note follow-up mixed with positive global markets as oil prices rebounded after a catastrophic drop a few days ago and some volatility decline. Markets remained strong on the afternoon session and buying blue chip stocks in IT, Pharmacy and some financial stocks and also rebound in mid cap stocks. Markets overall traded positively throughout the day and ended near the day’s high. “
