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Sunday, April 11, 2021

Global rally, positive macro data propel Sensex over 2%

Led by Reliance Industries (RIL), the 30-share index rallied by another 1,147.76 points to 51,444.65. The NSE Nifty Index, meanwhile, increased by 326.50 points to 15,245.60 on sustained buying support.

By: ENS Economic Bureau | Mumbai |
March 4, 2021 4:56:29 am
sensex today, sensex today live, sensex share price, sensex today live chart, nifty share price, nifty 50, nifty 50 share price, nifty bank, share market today, share market news, share market live, stock market today, stock market news, stock market live, markets today, business news, business news today, business news indiaMarkets across the globe were filled with optimism as the focus shifted from concerns over high valuation to a stronger economic recovery and growth in earnings.

The benchmark Sensex on Wednesday gained 2.28 per cent to close above the 51,000 level again, amid strong global cues and hopes of stronger economic recovery and earnings growth.

Led by Reliance Industries (RIL), the 30-share index rallied by another 1,147.76 points to 51,444.65. The NSE Nifty Index, meanwhile, increased by 326.50 points to 15,245.60 on sustained buying support.

Markets across the globe were filled with optimism as the focus shifted from concerns over high valuation to a stronger economic recovery and growth in earnings. “The Indian market was on a rising streak echoing the global sentiment. The Nifty Bank, which had a rough week so far, took a breather and led the rally while consolidation was seen on auto stocks,” said Vinod Nair, head of research, Geojit Financial Services.

BSE dealer Pawan Dharnidharka said the market has bounced back after the recent correction due to good fund inflows. “There’s enough liquidity in the system. The only thing the market is worried about are the rising bond yields,” he further said.

Ajit Mishra, VP—research, Religare Broking, said the benchmark indices started the day on a positive note despite mixed global cues and gradually inched higher as the day progressed.

Explained

Bond yields still a worry

Markets are taking comfort from encouraging domestic factors such as decent macro data, earnings upgrades and steady progress in the vaccine drive, according to analysts. However, rising bond yields remain a reason for concern for the market.

Healthy buying was witnessed across the board with metal and banking emerging as top gainers. Besides, the sudden surge in index major RIL in the last hour further fuelled the rally. The broader markets too ended in the positive territory in the range of 1.3-1.5 per cent. RIL shares gained 4.52 per cent.

According to analysts, participants are taking comfort from the domestic factors such as decent macro data, earnings upgrades and steady progress in the vaccine drive. Importantly, Nifty has reversed last week’s decline and indications are pointing towards a further surge ahead.

“We remain cautiously optimistic on the markets and suggest focusing more on the selection of trades,” Mishra said.

Meanwhile, stocks advanced in Asia on Wednesday after a wobbly day on Wall Street as investors focused on optimism that more imminent stimulus in the United States will energise the global economic recovery.

European stocks extended the week’s gains on Wednesday morning, with cyclical sectors leading the advance as the focus turned away from rising bond yields and toward an economic reopening, according to Deepak Jasani, head of retail research, HDFC Securities.

Rupee posts biggest single day spike since Sept ’20

New Delhi: The rupee on Wednesday surged by 65 paise — its biggest single day spike since September 2020 — to end at 72.72 against the US dollar on the back of weakness in the American dollar and rise in risk appetite in the global markets. The rally in domestic equities, positive macro data and global cues too helped the domestic unit. —ENS

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