Sensex zooms over 600 points in early trade
Equity benchmark Sensex soared over 600 points in early trade on Tuesday, led by gains in index majors HDFC twins and ICICI Bank amid a positive trend in global markets. Topping the 50,000-mark in the opening session, the 30-share BSE index was trading 601 points or 1.21 percent higher at 50,181.73. Similarly, the broader NSE Nifty rose 178.40 points or 1.20 percent to 15,101.55.
Sensex ended 1.74 percent higher in the previous session
In the previous session, 30-share BSE index, Sensex zoomed 848.18 points or 1.74 percent to end at 49,580.73; and Nifty surged 245.35 points or 1.67 percent to settle at 14,923.15. Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth Rs. 2,255.84 crore on Monday, as per provisional exchange data.
There were no losers in the Sensex camp
All Sensex components were trading in the positive terrain, with Bajaj Finance advancing over three percent, followed by IndusInd Bank, Axis Bank, PowerGrid, HDFC Bank, Bajaj Auto, and ICICI Bank. According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, the positive trigger for the market now is the steadily declining fresh COVID-19 cases and the steadily rising recovery rates.
Market recovery to start after the first quarter: Vijayakumar
"The latest numbers (2.62 lakh fresh cases and 4.22 lakh recoveries) indicate a continuation of the current positive trend. The market is discounting progressive lifting of the widespread lockdown starting in early June," Vijayakumar said. "Even though growth and earnings will be impacted in Q1, smart recovery can be expected in the subsequent quarters," he added.
Brent crude is trading at $69.73 per barrel
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo, and Seoul were trading on a positive note in mid-session deals. Equities on Wall Street ended with losses in overnight trade. Meanwhile, international oil benchmark Brent crude was trading 0.39 percent higher at $69.73 per barrel.
