Sensex and Nifty rocket as bulls take charge
Sensex records the biggest one day gain as it closed at the level of 30,067.21 with an increase of 8.97 per cent or 2,476.26 points. Nifty closed at the level of 8,792.20, up by 8.76 per cent or 708.40 points. Nifty witnessed all stocks advance with no declines. The advance-decline ratio on BSE was 3:1.
On Tuesday, bulls were seen to be rushing as indications of ease in the lockdown restrictions and a rally in global markets, boosted investor sentiments. Indian authorities are said to be studying proposals for considering a phased exit from the nationwide lockdown with partially lifting restrictions in low-risk areas while, continuing with stringent lockdown in areas with the maximum number of cases. As cases in the highly-affected European countries, Italy and Spain seem to drop down; the respective governments may consider easing the implemented lockdown. With Indian pharmaceutical companies having an upper hand globally, the country lifted its export ban on pharmaceutical drugs to allow export in some quantities in order to help other nations fight the pandemic. This decision was well-received within the markets as pharma was trading in green with an expected increase in demand and smooth revenue flow. A rally in global markets also boosted the morale of investors as Shanghai index closed up by 2.05 per cent, Nikkei was up by 2.01 per cent, KOSPI also rose by 1.77 per cent and Hang Seng went up by 2.12 per cent. European indices such as FTSE 100 and Dax were last seen trading up by 3.07 per cent and 3.99 per cent, respectively whereas American indices such as DJIA and S&P 500 were up by 7.73 per cent and 7.03 per cent, respectively.
Sensex gainers include IndusInd Bank-up by 22.60 per cent, Axis Bank-up by 19.41 per cent, M&M which was up by 14.44 per cent, stock of FMCG manufacturers HUL and Nestle rose by 13.51 per cent and 12.14 per cent, respectively. Auto maker Maruti went up by 13.41 per cent, TCS rose by 7.29 per cent, ONGC- up by 4.58 per cent, etc.
As for sectoral indices, bankex witnessed a significant rally of 10.70 per cent, followed by auto, which was up by 9.49 per cent as well as telecom index, which was up by 9.40 per cent. As healthcare seems to benefit from the current situation, the index closed in green up by 8.95 per cent. With drop in oil prices and China getting back to normalcy, metal index surged by 8.13 per cent while oil & gas index closed up by 7.35 per cent.