Last hour surge lift Sensex, Nifty 2% higher, M&M gains 6%; key factors behind today’s rally

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Published: May 20, 2020 4:15:06 PM

During the last hour of the session, BSE Sensex hit the day's high of 30,878.31 and ended at 30,818. While the broader Nifty 50 index inched almost closer to the 9,100 level

Sensex, NiftyNifty Pharma index was the top gainer which advanced 372 points or 4.10 per cent led by Aurobindo Pharma and Dr Reddy’s Laboratories

Indian share market opened higher and remained in a positive territory throughout the session on Wednesday. During the last hour of the session, BSE Sensex hit the day’s high of 30,878.31 and ended at 30,818. While the broader Nifty 50 index inched almost closer to the 9,100 level at 9,093 but closed 9,066. “In the first half banking and NBFC stocks remained under pressure but after the Cabinet approved a special liquidity scheme for NBFCS/HFCS all the financial stocks rallied,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd said. Dr Reddy’s Laboratories share price rallied over 6 per cent on the back of better than expected numbers. It ended the session 5.71 per cent up at Rs 3,910.75 per equity share on BSE.

HDFC shares lead the rally: HDFC shares led the rally on BSE Sensex with a surge of 5.74 per cent. It was followed by M&M and LT shares. As many as 26 stocks out of 30 Sensex scrips finished their trade in positive territory. On the flip side, just four stocks ended in red. IndusInd Bank was the top Sensex laggard, down 2.85 per cent. Hero MotoCorp, Bharti Airtel and Asian Paints.

Auto stocks witness sharp recovery: Mahindra and Mahindra (M&M) was among top index contributors. M&M shares gained nearly 6 per cent in the trade, “Auto stocks have seen a good bounce back as the chances of demand grew. Now people will prefer personal vehicles as compared to public transports in order to safeguard oneself from getting infected,” Wagh added.

Nifty Pharma drove Nifty 50: All 11 sectoral indices ended the session with upticks. Nifty Pharma index was the top gainer which advanced 372 points or 4.10 per cent led by Aurobindo Pharma, Dr Reddy’s Laboratories and Cipla. Nifty FMCG index also traded higher with ITC, Godrej Consumer Properties and Emami as top index gainers.

Broader market: The broader market,  mid-caps and small-caps, underperformed the benchmarks, as their sectoral indices on BSE closed 1.49 per cent and 1.13 per cent higher as comapred to 2.06 per cent in S&P BSE Sensex.

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