Indian stocks surged past the 50,000 mark on Tuesday, powered by a new $3 trillion US spending package, clocking robust gains for the second straight session.
The Sensex rose 1,128 points, or 2.3%, the most since 2 February, to close at 50,136.58, while the broader Nifty index added 337.80 points, or 2.3%, to 14,845.10.
The rebound comes after a period of volatility thanks to rising covid-19 cases in the country. The Sensex is now down 3.41% from its March high, while the Nifty is down 3.2%.
“BSE IT, Metal, Healthcare and FMCG indices took the lead. Major Asian and European markets had a positive session, while a select few like Taiwan’s weighted index and Germany’s DAX index surged to fresh all-time highs,” said Devarsh Vakil, deputy head of retail research at HDFC Securities.
HDFC Bank gained the most among Sensex stocks, rising 4.11%. HCL Technologies rose 3.91%, Infosys Ltd 3.69% and NTPC Ltd 3.4%. Gains in Nestle India Ltd, Housing Development Finance Corp. Ltd, Power Grid Corp. of India Ltd, Tata Consultancy Services Ltd, Hindustan Unilever Ltd, Reliance Industries Ltd and ICICI Bank also supported the rally. Among the laggards were Mahindra and Mahindra Ltd, Bharti Airtel Ltd and Axis Bank Ltd.
“Markets opened firm on strong global cues, with US President Joe Biden slated to announce his $3 trillion infrastructure package. Investors shrugged off the rising coronavirus cases in a few states as the government prepares for vaccine rollout on a larger scale. Steel and IT stocks led the bull charge, while FMCG stocks joined the party in late afternoon trade as the Sensex scaled past 50,000,” said S. Ranganathan, head of research at LKP Securities.
{{/usCountry}}“Markets opened firm on strong global cues, with US President Joe Biden slated to announce his $3 trillion infrastructure package. Investors shrugged off the rising coronavirus cases in a few states as the government prepares for vaccine rollout on a larger scale. Steel and IT stocks led the bull charge, while FMCG stocks joined the party in late afternoon trade as the Sensex scaled past 50,000,” said S. Ranganathan, head of research at LKP Securities.
{{/usCountry}}All sectoral indices closed higher, with BSE IT, Teck, Metal, Healthcare, FMCG, basic materials and finance indices rallying up to 3.51%.