Equities opened with a bang on Monday with the benchmark Sensex zooming over 848 points as a fall in Covid-19 cases generated optimism that states are unlikely to tighten restrictions further, allowing the economy to reclaim its recovery path.
Latest data showed that the daily additions of Covid-19 cases fell below the 3 -lakh-mark for the first time since April 21, an indication that the second wave may be tapering off. “The market expects a rapid fall in daily reported Covid cases that helped to ease concerns over extended lockdowns and sharp correction in 2021-22 estimates,’’ said Vinod Nair, head of Research at Geojit Financial Services.
However, there are others who feel that one must not jump the gun to conclude that the second wave is on the wane.
An analyst with a local brokerage said apart from the high number of cases, the slow progress of vaccination is another worry.
The Sensex opened in the green at 48990.70 and rose almost 896 points to touch an intra-day high of 49628.42. It finally ended 848.18 points, or 1.74 per cent higher at 49580.73. The NSE surged 245.35 points to 14923.15.
Shyam Metalics IPO
Calcutta-based Shyam Metalics and Energy Ltd has received market regulator Sebi’s approval to raise Rs 1,107 crore through an initial public offer.
