E-Paper
Markets rise nearly 2%, highest in over a month
Shares in other Asia-Pacific regions were mixed. Markets in Taiwan, which has seen a recent spike in infections, fell 2.99%. Stocks in China and Hong Kong were up nearly 1% following China’s industrial output, which rose 9.8% year-on-year in April.
Optimism led by a decline in fresh Covid-19 cases in India drove markets on Monday as investors started to buy stocks hoping for a recovery. Markets posted their best single-day gains in over a month, rising nearly 2%. The BSE Sensex closed 848.18 points or 1.74% higher to close at 49,580.73. The Nifty was up 245.35 points or 1.67% at 14,923.15.
Shares in other Asia-Pacific regions were mixed. Markets in Taiwan, which has seen a recent spike in infections, fell 2.99%. Stocks in China and Hong Kong were up nearly 1% following China’s industrial output, which rose 9.8% year-on-year in April.
New covid infections over the past 24 hours stood at 281,386, the health ministry said on Monday, dropping below 300,000 for the first time since April 21.
“A consistent reduction in Covid daily caseload certainly augurs well for the markets. It indicates that prediction of receding second wave of covid cases by the end of May or mid of June holds true and the adverse impact of second wave should not be felt beyond Q1FY22. However, rising cases in the hinterlands and rising fatality rates remain a worry,” said Binod Modi, head, strategy, Reliance Securities.
Concerns over rising inflationary pressure and increasing apprehension among investors about the US Fed’s soft monetary stance because of sharp rise in CPI inflation may weigh on sentiments.
