Sensex surges 1,500 points to reclaim 29,000 mark
Indian shares rose on Tuesday, tracking broader Asian market, as investors hoped the coronavirus spread may have peaked in key global centres due to fall in death rates.
The broader NSE Nifty 50 index rose 4.6% to 8,455.5 by 0412 GMT and the benchmark S&P BSE Sensex was up 4.82% at 28,922.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose almost 1% after places that took the worst hit from the virus saw an easing in fresh cases and deaths.
Authorities in Italy and Spain looked to ease lockdowns after steady fall in coronavirus-related fatality rates.
Meanwhile, India lifted export restrictions on 24 drugs it imposed last month due to the virus. The Nifty Pharma index was up 4.59% in early trading following the news, its highest since March 11.
“Global markets have rallied and the number of virus cases has started coming down,” said Anita Gandhi, a whole-time director at Arihant Capital Markets in Mumbai.
“Positives are coming in, but the volatility will continue to remain till we are confident that we are completely out of danger.”
India had 3,981 active coronavirus cases and deaths stood at 114 as of Tuesday morning, government data showed https://www.mohfw.gov.in/#.
Banks and financial stocks led gains in the equities market for the day with the Nifty banking index, which tracks both state-owned and private-sector lenders, rose 6.15%.
The Nifty financials index gained 5.82%.
IndusInd Bank Ltd jumped nearly 15% and topped the gainers on the Nifty. The bank reported a rise in retail deposits and advances on Monday.
Other major banks including Kotak Mahindra Bank Ltd and HDFC Bank Ltd also reported a rise in deposits for the year ended March 31.
Automaker Mahindra and Mahindra Ltd was up nearly 10% and software exporter HCL Technologies was up about 7%.
Bajaj Finance Ltd and Bajaj Finserv Ltd were the day’s only losers on the blue-chip index, falling 3.6% and 2.7%, respectively.