Benchmark indices continued to break records as positive results from Pfizer’s Covid-19 vaccine trials and trends from the assembly elections in Bihar saw the Sensex closing for the first time above the 43000 mark.

The 30-share index gained for the seventh consecutive session and vaulted 680.22 points or 1.60 per cent to a record close of 43277.65. During intra-day trades, it touched a lifetime peak of 43316.44.

The broader NSE Nifty also closed at its all-time high of 12631.10, rising 170.05 points or 1.36 per cent. It hit an intra-day record of 12643.90.

The rupee depreciated 3 paise to close at 74.18 against the dollar on Tuesday as higher crude oil prices and a stronger greenback overseas weighed on sentiment.

The rise in crude oil prices had a negative impact on the domestic unit, but robust domestic equities supported the rupee and restricted the fall, analysts said.

However, their performance did not come as a surprise. Markets worldwide had surged on optimism of a global economic recovery after Pfizer Inc and BioNTech SE said on Monday that their vaccine candidate was found to be more than 90 per cent effective in preventing the coronavirus.

Investor sentiments were also boosted by trends from the Bihar elections which showed the NDA inching towards victory, generating expectations of more reforms by the Centre.

In Asia, Hong Kong, Seoul and Tokyo ended with gains, while Shanghai settled lower. Stock exchanges in Europe were mostly trading on a positive note. Provisional data from the NSE showed foreign portfolio investors (FPIs) bought stock worth Rs 5,600 crore on Tuesday.

“The global financial markets experienced a wave of euphoria over the potential breakthrough in the coronavirus vaccine development. An uptick in beaten down stocks and sectors were visible today viewing hopes of recovery in business,” Vinod Nair, head of research at Geojit Financial Services, said.

He said momentum can be sustained by further progress in vaccine development, a domestic stimulus package, consistent FII inflows and a bounce in sentiment following Joe Biden’s win in the US elections.
“However, temporary correction due to profit booking cannot be ruled out because the market is highly optimistic that the vaccine development will rapidly improve the ground reality,” Nair said.

Tuesday’s rally was led by banking and finance stocks while IT and pharmaceutical counters witnessed profit booking. Banking shares have seen buying after better than expected results from SBI and HDFC and positive commentary from their managements on the road ahead.

Pfizer cuts gain

Shares of Pfizer Limited on Tuesday trimmed most of its early gains to close nearly 3 per cent higher. In early trade, it had zoomed nearly 20 per cent on positive developments over its vaccine candidate.
The stock settled at Rs 5,048.45, a rise of 2.66 per cent on the BSE.