Market benchmark Sensex rallied over 600 points in early trade on Thursday, driven by gains in index majors Reliance Industries, HDFC twins, and Infosys amid a positive trend in Asian equities.
Favourable global market scenario is playing an important role in this vaccine-powered hope trade
Market benchmark Sensex rallied over 600 points in early trade on Thursday, driven by gains in index majors Reliance Industries, HDFC twins, and Infosys amid a positive trend in Asian equities.
Covid-ravaged India continues the fight as it records 3.79 lakh new Covid cases in 24 hours; total recoveries reach 1,50,86,878. The death toll increased to 2,04,832 with a record 3,645 daily new fatalities.
The 30-share BSE index reclaimed the 50,000-level and was trading 606.19 points or 1.22 per cent higher at 50,340.03 in initial deals.
Similarly, the broader NSE Nifty surged 169.30 points or 1.14 per cent to 15,033.85.
IndusInd Bank was the top gainer in the Sensex pack, rising around 3 per cent, followed by Axis Bank, Bajaj Finance, Bajaj Finserv, ONGC, Kotak Bank, and Reliance Industries.
On the other hand, Nestle India, HCL Tech, and Sun Pharma were the laggards.
In the previous session, Sensex surged 789.70 points or 1.61 per cent to finish at 49,733.84, and Nifty jumped 211.50 points or 1.44 per cent to 14,864.55.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 766.02 crore on Wednesday, while domestic institutional investors (DIIs) bought shares worth Rs 436.20 crore, according to provisional exchange data.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, "the resilience of the market amidst the gloomy pandemic-related news has taken most market players by surprise."
Registering a steady increase, the active Covid cases have increased to 30,84,814 comprising 16.79 per cent of the total infections.
Nifty has gained more than 500 points during the last five trading sessions.
The favourable global market scenario is playing an important role in this vaccine-powered hope trade. The US Federal Reserve meeting, as expected, has kept rates and the bond-buying program unchanged, reiterating the accommodative stance. Sustained bond-buying has the risk of higher asset price inflation in the market.
US stocks were flat as investors digested major technology earnings and geared up for the latest Federal Reserve policy announcement.
Rates stayed near zero, and the Fed remains committed to its $120 billion a month bond-buying program designed to keep borrowing costs low and refuel the economy.
Facebook rose 5.5 per cent in after-hours trading following the release of its latest earnings after the closing bell, and Apple added 3.3 per cent in extended trading.
"The localised lockdowns and curfews have not impacted industrial activity much but there is a downside risk to GDP growth and earnings estimates,” he noted.
The Indian rupee appreciated by 26 paise to 74.10 against the US dollar in opening trade on Thursday, tracking positive domestic equities and weak American currency.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul, and Tokyo were trading on a positive note in mid-session deals.
Bourses on Wall Street ended with losses in overnight sessions.
Meanwhile, international oil benchmark Brent crude was trading 0.33 per cent higher at $67 per barrel.