Sensex zooms 1,862 points; Nifty reclaims 8,300 level
Reliance Industries was the top gainer in the Sensex pack.
Benchmark Sensex soared 1,862 points on Wednesday led by massive gains mainly in heavyweights RIL, HDFC twins and ICICI Bank as investors shrugged off concerns over the 21-day nationwide lockdown in anticipation of a stimulus package by the government to cushion the economic blow of COVID-19.
Domestic market was also enthused by recovery in global stocks after the U.S. Senate and White House reached agreement on a $2 trillion stimulus package for the U.S. economy.
After opening on a choppy note, the BSE barometer ended 1,861.75 points or 6.98% higher at 28,535.78.
Similarly, the NSE Nifty settled 516.80 points, or 6.62%, up at 8,317.85.
Reliance Industries was the top gainer in the Sensex pack, rallying up to 15%, followed by Kotak Bank, Maruti, HDFC twins, Titan, L&T and Axis Bank.
On the other hand, IndusInd Bank, ONGC, ITC and Bajaj Auto closed with losses.
Receding uncertainty in domestic markets following defined lockdown announcement and assurance of domestic stimulus by the government boosted investor sentiment, said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.
The rally was supported by strength across the markets including large frontline and mid-small cap stocks ahead of expiry tomorrow (Thursday) which also played its part in terms of short-covering which added further fuel to the rally, he added.
Further, global markets rallied after the White House and Senate reached a deal on a gigantic coronavirus stimulus bill, he pointed out.
Earlier in the day, the U.S. Senate and White House reached agreement on a $2 trillion stimulus package for the U.S. economy.
The deal aims to buttress the teetering economy by giving roughly $2 trillion to health facilities, businesses and ordinary Americans buckling under the strain of the coronavirus pandemic.
Bourses in Shanghai, Hong Kong, Tokyo and Seoul rallied up to 8%. Benchmarks in Europe were also trading up to 4% higher.
International oil benchmark, Brent crude futures rose 0.07% to $27.17 per barrel.
The domestic currency market was closed on account of Gudi Padwa.
According to the latest Union Health ministry update the number of coronavirus cases in India rose to 562, while the death toll due to this viral infection was revised down to nine from 10 after the second death in Delhi turned out to be negative.
The number of global Covid-19 infections has shot past 4,20,000. Worldwide fatalities have topped 18,000.
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