Sensex Rallies over 150 Pts Despite Negative Trend in Asian Markets

Equity benchmark Sensex advanced over 150 points in early trade on Tuesday, tracking gains in index majors Reliance Industries, HDFC Bank, and TCS despite a negative trend in Asian markets.

The domestic equity market experienced a sharp fall in the past couple of weeks due to the unprecedented rise in cases in the ongoing second Covid-19 wave. 

Currently, with 3,23,144 people testing positive for coronavirus infection in a day India's total tally of Covid-19 cases has climbed to 1,76,36,307, while the national recovery rate has further dropped to 82.54 per cent, according to the Union Health Ministry data updated on Tuesday.  

The 30-share BSE index was trading 155.63 points or 0.32 per cent higher at 48,542.14.

Similarly, the broader NSE Nifty advanced 49.80 points or 0.34 per cent to 14,534.80.

Reliance Industries was the top gainer in the Sensex pack, rising around 2 per cent, followed by PowerGrid, Bajaj Finance, TCS, Bharti Airtel, Dr. Reddy’s and HDFC Bank.

On the other hand, Axis Bank, Kotak Bank, HDFC, Tech Mahindra, Nestle India and HCL Tech were among the laggards.

In the previous session, Sensex ended 508.06 points or 1.06 per cent higher at 48,386.51, and Nifty jumped 143.65 points or 1 per cent to 14,485.

Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 1,111.89 crore on Monday, according to provisional exchange data.

Domestic equities rebounded mainly led by a sharp recovery in financials, said Binod Modi Head-Strategy at Reliance Securities.

Barring Pharma, most of the key sectoral indices traded in the green in the morning session. Strong March quarter performance led ICICI Bank to recover sharply, while HCL Tech witnessed sell-off due to subdued the fourth quarter performance.

“A persistent rise in Covid-19 cases across the nation and enhanced economic restrictions have dented investors sentiments over the last couple of weeks. However, a sharp reduction in fresh caseload in Maharashtra on Monday offered some comfort and a further reversal in caseload should augur well for the economy and markets," he noted.

Active Covid-19 cases in India stood at 28,82,204, up from 28,13,658 cases registered on Monday, according to Union Health Ministry data.

The number of people who have recuperated from the disease surged to 1,45,56,209 while the case fatality rate has further dropped to 1.12 per cent. 

Rupee rises 9 paise to 74.64 against the US dollar in early trade.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo, and Seoul were trading on a negative note in mid-session deals.

Bourses on Wall Street ended with gains in overnight sessions.

"With Nasdaq and S&P at record highs, the global support to markets is strong. The Federal Open Market Committee (FOMC) meeting starting later in the day will be keenly watched by markets for clues on probable trends in rates and yields," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Meanwhile, international oil benchmark Brent crude was trading 0.55 per cent higher at $65.39 per barrel.