September 28, 2021

Published from Mumbai, Delhi & Bhopal

Declining Covid trend pushes equities higher, Sensex above 50K

Mumbai,  A steady decline in new Covid cases, along with an accelerated vaccination drive and positive global cues, powered the rise of India’s benchmark stock indices on Tuesday.

Both key indices started on a positive note with a gap-up opening and maintained their gains with the Nifty50 of the National Stock Exchange breaching the 15,100 point mark and the S& BSE Sensex reclaiming the 50,000-points threshold.

Globally, robust trends were witnessed across Asian stock markets.

On the domestic side, indices maintained buoyancy throughout the session as the daily rise in domestic Covid-19 cases stayed below the 3 lakh mark for a second straight day.

Sector-wise, capital goods, consumer durables, power, and auto rose the most while telecom and FMCG fell.

The S&P BSE Sensex ended at 50,193.33, higher by 612.60 points, or 1.24 per cent, from its previous close.

Similarly, the Nifty50 of the National Stock Exchange closed the day’s trade at 15,108.10, up 184.95 points, or 1.24 per cent, from its previous close.

“Indian equity benchmark indices rose for a second day on May 18, tracking most Asian peers and closed at a two month high,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

“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.”

Geojit Financial Services’ Head of Research Vinod Nair said: “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 3 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.”

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