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Monday, June 01, 2020

Indices stage sharpest one-day gain since 2009; Sensex rallies 2,476 points to settle above 30,000-mark on global cues

The S&P BSE Sensex surged 2,476.26 points (8.97 per cent) to settle above the 30,000-mark at 30,067.21. Likewise, the broader Nifty 50 settled at 8,785.90, up 702.10 points (8.69 per cent).

By: Express Web Desk | New Delhi | Updated: April 7, 2020 4:13:34 pm
The BSE Sensex rallied nearly 9 per cent on Tuesday. (Express photo by Pradip Das)

The benchmark equity indices on the BSE and National Stock Exchange (NSE) snapped out of a two-session losing streak after they settled nearly 9 per cent higher on Tuesday, their sharpest one-day gain since 2009, tracking a rise in global markets which rallied on signs of a slowdown in coronavirus-related deaths.

The S&P BSE Sensex surged 2,476.26 points (8.97 per cent) to settle above the 30,000-mark at 30,067.21. During the intraday trade, the 30-share BSE benchmark had rallied as much as 2,566.70 points (9.30 per cent) to 30,157.65. Likewise, the broader Nifty 50 settled at 8,785.90, up 702.10 points (8.69 per cent). The NSE frontline index had climbed as much as 735.60 points (9.10 per cent) to 8,819.40 during the intraday session.

The markets were shut on Monday on account of Mahavir Jayanti. On Friday, the Sensex had fallen 674.36 points (2.39 per cent) to end below the 28,000-level at 27,590.95. The Nifty too had settled below the 8,100-mark at 8,083.80, down 170.00 points (2.06 per cent).

All the Sensex stocks ended in the positive territory on Tuesday. IndusInd Bank, Axis Bank, Mahindra & Mahindra (M&M), ICICI Bank, Hindustan Unilever (HUL) and Maruti Suzuki India were the top gainers of the day. (see heatmap below)

Gainers of the day on the Sensex. (Source: BSE)

All the sectoral indices on the NSE too settled in a sea of green on Tuesday. The Nifty Bank index, one of the key sectoral index, ended 10.42 per cent higher on Tuesday led by a sharp rally in IndusInd Bank, Axis Bank, ICICI Bank and HDFC Bank. This apart, the Nifty Pharma index settled 10.43 per cent higher led by Aurobindo Pharma, Dr. Reddy’s Laboratories, Cadila Healthcare and Sun Pharmaceutical Industries.

Here’s how the sectoral indices performed:

Sectoral gainers of the day on the National Stock Exchange. (Source: NSE)

In the broader market, the S&P BSE 500 index settled at 11,346.44, up 819.15 points (7.78 per cent). this apart, the S&P BSE MidCap index ended at 10,771.38, up 552.33 points (5.40 per cent) and the S&P BSE SmallCap index ended at 9,797.21, up 388.17 points (4.13 per cent).

“Aided by news that the infections were peaking in some of the worst affected areas around the world, the Indian markets in sync with the global markets, witnessed a relief rally. Investors are also awaiting an ease in lockdown procedures, so companies can get down to generating business. In a holiday-shortened week, any news regarding peaking infections will be bought into. Defensives like Pharma and FMCG, which has witnessed the least disruption in their business, will continue to be favoured,” Vinod Nair, Head of Research at Geojit Financial Services said in a post-market statement.

Rupee

The rupee surged by 49 paise to 75.64 (provisional) against the US dollar on Tuesday, taking cues from positive equity market sentiment. At the interbank foreign exchange, the rupee opened at 75.92 and gained further ground to touch the day’s high of 75.60. The Indian currency finally settled for the day at 75.64, registering a rise of 49 paise over its previous close, according to news agency PTI.

On Friday, the rupee had settled at 76.13 against the US dollar.

Last week, the Reserve Bank of India (RBI) had reduced the market hours for currency and debt markets with effect from April 7 to April 17 (from 10 am to 2 pm).

Global market

World stock markets enjoyed a second day of sharp gains on Tuesday as signs of progress against the coronavirus in both Europe and the United States and more liberal helpings of stimulus kept investors charging back in.

There was an added boost from commodity markets as oil climbed nearly 3 per cent on supply cut hopes, while currency markets also came alive as a tumbling dollar saw the euro race out of a six-session rut of falls.

Equities was were the main action was however. Japan’s Nikkei followed up Wall Street’s 7 per cent surge on Monday with a 2 per cent jump as its government promised a near $1 trillion stimulus package – equal to a fifth of its GDP.

Europe quickly got in the swing of things too. The pan-European STOXX 600 index climbed over 3 per cent as the respective markets in London, Frankfurt, Paris and Milan all bounded higher.

– with global market inputs from Reuters

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