Reports of states such as Maharashtra mulling fresh curbs because of a spike in coronavirus cases affected the markets on Monday which witnessed heavy volatility with the Sensex rising 195 points at the end of the day.
On the BSE, the 30-share Sensex opened above the 44000 mark at 44164.17 amid positive sentiments because of reports of more success by firms in the Covid-19 vaccine trials.
However, the shares came under pressure on reports that Maharashtra — home to India’s financial capital — could take a decision on a fresh lockdown within 8-10 days. With cases again seeing an increase across the country, it was feared the virus would impact economic activity and growth which are showing signs of an upswing.
The Sensex initially fell to an intra-day low of 43747.22 — down 135 points over its last close.
Stocks soon regained their composure on optimism over the vaccine as the gauge hit a record intra-day high of 44271.15. Thereafter, the index ended 194.90 points, or 0.44 per cent higher at 44077.15.
Similarly, the broader NSE Nifty rose 67.40 points, or 0.52 per cent, to close at 12926.45.
ONGC was the top gainer in the Sensex pack, surging around 7 per cent, followed by IndusInd Bank, Infosys, Tech Mahindra, Reliance Industries, HCL Tech and TCS. On the other hand, HDFC, ICICI Bank, Axis Bank, SBI and M&M were the laggards.
“Global cues were positive post the news that AstraZeneca’s Covid-19 vaccine could be around 90 per cent effective without any serious side effects, which follows a string of encouraging vaccine results in recent weeks,” Siddhartha Khemka of Motilal Oswal Financial Services said.
“Investors pinned hopes for economic revival on coronavirus vaccines, despite surging cases globally and delays to fresh US stimulus,” he added.
Asia trends
In Asia, bourses in Shanghai, Hong Kong and Seoul ended with significant gains. Stock exchanges in Europe were also trading on a positive note. Meanwhile, Brent crude futures, the global oil benchmark, rose 1.64 per cent to $ 45.81 per barrel.