Updated: May 18, 2021 4:48:42 pm
The frontline equity indices on the BSE and National Stock Exchange (NSE) extended their gains and ended over 1 per cent higher on Tuesday as the daily rise in fresh coronavirus (Covid-19) cases remained below the 3,00,000-mark for a second straight day.
The S&P BSE Sensex reclaimed the 50,000-mark to settle at 50,193.33, up 612.60 points (1.24 per cent). Likewise, the Nifty 50 on NSE too reclaimed 15,000-mark to end at 15,108.10, up 184.95 points (1.24 per cent). Both the indices had opened around 1 per cent higher earlier in the day and traded in the positive territory throughout the session.
India reported 2.63 lakh cases on Monday and it saw its active cases drop by about 1.65 lakh on Monday, the biggest drop ever. There are now 33.52 lakh active cases in the country. This is the second consecutive day when the fresh cases reported were below the 3-lakh mark. Click here to follow Covid-19 LIVE Updates
Mahindra & Mahindra (M&M), Bajaj Auto, Titan Company, Bajaj Finance, HDFC Bank and Larsen & Toubro (L&T) were the top gainers on the BSE benchmark on Tuesday. On the other hand, Bharti Airtel, ITC and Dr Reddy’s Laboratories were the top losers.
Among the sectoral indices, the Nifty Auto was the best performer on Tuesday after rising 3.22 per cent driven by Ashok Leyland, M&M and Bajaj Auto. This apart, Nifty Metal index rose 1.66 per cent led by Hindustan Zinc and Adani Enterprises. The key Bank Nifty rose 1.38 per cent aided by AU Small Finance Bank and The Federal Bank.
In the broader market, the S&P BSE MidCap index settled at 21,232.21, up 390.01 points (1.87 per cent), while the S&P BSE SmallCap ended at 22,847.90, up 288.98 points (1.28 per cent). The volatility index or India VIX slipped 1.87 per cent to 19.2400.
World stocks pushed higher on Tuesday and the dollar dipped to near three-month lows as bets that US interest rates would remain low helped investors look past rising COVID-19 infections in Asia.
Equities in Europe rose in morning trade with the STOXX 600 regional benchmark closing in on its previous record high, up 0.5 per cent, while Wall Street looked set to follow with S&P 500 futures gaining almost 0.4 per cent.
MSCI’s broadest index of Asia-Pacific shares outside Japan rallied 1.6 per cent, as it recovered part of the losses suffered recently after new Coronavirus cases prompted some economies to impose fresh anti-virus restrictions. MSCI’s gauge of stocks across the globe gained 0.5 per cent by 0810 GMT.
How market expects reacted:
- “In anticipation of rapid fall in covid cases, the implication of corporate results and favourable Asian markets, the Indian market has reverted with a strongly after the three months of muted performance. Global futures indices rose ahead of the release of the Fed’s policy minutes, which is due on Wednesday, in anticipation of accommodative outlook,” said Vinod Nair, Head of Research at Geojit Financial Services.
- “Index opened a day with a strong gap above its good hurdle zone of 15,050 & managed to close a day at 15,108 with good gains of more than one percent. Going forwards 15,000-14,900 will act as a strong base holding above said levels structure will be quite positive also any dip near said levels will be again buying opportunity with keeping overall stop out level below 14,900 zone and resistance is coming near 15,200-15,300 zone,” said Rohit Singre, Senior Technical Analyst at LKP Securities.
- “Nifty breached the earlier resistance of 15,044 with an upgap and closed with sharp gains. Advance-decline ratio was also positive. The next resistance for the Nifty is at 15,186-15,240 while the support for the near term could come in at 14,938-14,988. Falling new cases of Covid-19 and faster recoveries has raised hopes that the second wave is now on a decline mode and India shall soon be back on the normal growth path,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
–global market inputs from Reuters
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