The BSE Sensex soared 1128 points on Tuesday, its biggest single day gain in almost two months as investors bought on positive global cues following the re-opening of the Suez Canal amid hopes of an enhanced Covid-19 vaccination coverage in countries such as the US.
The markets were weighed down by the spike in coronavirus cases in India that has raised the spectre of another lockdown.
However, hopes of a global economic recovery with the vaccination rollout gathering speed and the end of the Suez Canal blockage that was feared to have an adverse impact on certain commodities led to stocks gaining in Europe and Asia — with a positive spinoff in India.
Analysts said the attention in India will now be on the vaccination drive which will be extended to more number of people from the next month and the upcoming results season. There is an optimism that corporate India will continue to report good numbers for the quarter ended March 31, 2021.
The 30-share Sensex on Tuesday opened in the green at 49331.68 and breached the 50000-mark to hit a day’s high of 50268.45. It thereafter ended 1128.08 points or 2.30 per cent higher at 50136.58 — a level not seen since March 16. On Friday, the benchmark had closed 568.38 points higher. Markets were closed on Monday for Holi.
Driven by the rally, the market capitalisation of BSE-listed companies soared Rs 6.02 lakh crore to Rs 2,04,77,472.33 crore in two trading days.
Similarly, the broader NSE Nifty on Tuesday also posted its biggest single-day rise since February 2 to settle at a nearly two-week high of 14845.10, a gain of 337.80 points or 2.33 per cent. As many as 46 of its constituents closed in the green.
Buying was seen across financials, FMCG and tech stocks.
Among the Sensex pack, HDFC Bank led the list of gainers as its shares ended higher by 4.11 per cent. It was followed by HCL Technologies, Infosys, Hindustan Unilever and NTPC which rose up to 4 per cent.
All the sectoral indices ended on a positive note with BSE IT, tech, metal, healthcare, FMCG, basic materials and finance indices rallying up to 3.51 per cent. Broader midcap and smallcap indices surged up to 1.30 per cent.
“The markets opened firm on strong global cues with (US President) Joe Biden slated to announce his $3 trillion infrastructure package. Investors shrugged off the rising coronavirus cases in a few states as the Centre prepares for a vaccine rollout on a larger scale. Steel & IT stocks led the bull charge while FMCG stocks joined the party in late afternoon trade as the sensex scaled past 50k,” S Ranganathan, head of research at LKP Securities, said.
