Sensex climbs 890 points to near 50,000-level; Nifty up 250 points to top 14,700
Domestic equity indices jumped on Monday as the country started the second phase of its vaccination drive against the coronavirus disease (Covid-19) and data showed that the economy grew in the October-December quarter. The S&P BSE Sensex nearing the 50,000 level and the Nifty reaching above 14,700 as the October-December period registered growth after two quarters of contraction.
At 10.57am, the 30-share Sensex was up 892.66 points or 1.82% at 49,992.65 and the 50-share index Nifty was trading 14,792.60, up by 263.45 points or 1.81%. Sensex and Nifty plunged nearly 4% on Friday as rising bond yields sparked a massive sell-off in global equities.
The jump comes on a day when the government has rolled out the second phase of the Covid-19 vaccination drive during which citizens above 60 years of age and those above 45 years in the high-risk category will be inoculated. Data released by the government on Friday showed that India’s gross domestic product (GDP) grew 0.4% in the October-December quarter as against the revised contraction of 7.3% in July to September period.
"The GDP data was positive and this is building expectations that post-Covid recovery would be fast, the expansion of immunisation drive is also helping alleviate any concerns," said KK Mittal, an investment adviser at Venus India told news agency Reuters.
Private sector lenders and IT stocks were the top boosts to the Nifty, according to Reuters. The Nifty private bank index which slumped 4.7% in Friday's rout, advanced 1.6% on Monday.
According to analysts cited by PTI, the high-frequency indicators were pointing towards the fact that the domestic economy is slowly entering the recovery path.
Other Asian shares were trading higher in afternoon trade amid some stability in bond markets after last week’s turmoil. Progress in the US stimulus package also lent some support to investor sentiments globally.
The rupee, however, slumped 29 paise to 73.76 against the US dollar in opening trade, weighed down by significant foreign fund outflows and rising crude oil prices. Brent crude futures, the global oil benchmark, rose 1.51% to $ 65.39 per barrel.