Sensex and Nifty moved higher today on the hopes of stimulus package for the economy battered by the fast-spreading coronavirus (COVID-19) pandemic.
As the bulls took over the grip, headline indices posted nearly 2 per cent gains on Wednesday led by rally in index heavyweights HDFC twins, ICICI Bank, Infosys and TCS. BSE Sensex ended at 32,720.16, up 605.64 points or 1.89 per cent. While the broader Nifty 50 index settled above 9,550-mark, gaining 173 points or 1.84 per cent. During the day, Sensex hit the day’s high of 32,897 and Nifty 9,599. The top gainers of BSE Sensex were HDFC, HDFC Bank, HCL Tech, M&M and Tata Steel. On the flip side, Axis Bank was the top loser, followed by Asian Paint, HUL, Titan, RIL and Nestle India. The Nifty Metal index was top sectoral gainer with a growth of 3.74 per cent, led by SAIL, Hindalco Industries and Jindal Steel. With today’s rally Nifty has risen 27 per cent from its March low of 7,511, while Sensex gained 23 per cent from its 52-week low.
What kept Sensex, Nifty higher today?
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Hopes of relaxation in lockdown: The government has indicated that it will come out with more measures to support businesses. Any easing of lockdown restrictions will be taken as a positive for the market as a whole, says Rajesh Palviya, Head Technical & Derivatives, Axis Securities told Financial Express Online. “The Nifty50 managed to give breakout above consolidation range of 8,820 to 9,400 levels, short-covering action witnessed ahead of expiry of April series as Nifty managed to cross above highest call concentration level of 9500. Sensex managed to cross above its 38.2% Fibonacci retracement (31900) which also added confidence to bulls to initiate fresh buying in the market,” Palviya added.
Weekly options expiry: Nifty 50 touched the day’s high of 9,599 in the intraday session. “Although the Nifty came off over 75-points from the high point, it ended on a stronger-than-expected note. The weekly options expiry that comes up tomorrow had all to do with the day’s trading trajectory and contributed to the markets staying up,” technical analyst Milan Vaishnav told Financial Express Online. “The Nifty now tests the upper range of the rising wedge and its behaviour against the 9500 levels would be crucial as the weekly options figures are what keeping the markets in the defined range after opening,” Vaishnav added.
Rising hopes of stimulus package: Markets moved higher on the hopes of stimulus package for the economy battered by the novel coronavirus (COVID-19) pandemic. “Globally, we have been witnessing some respite with respect to COVID-19 and hence, global markets are showing some relief rally for a few days. We clearly have a rub-off effect of it and with the rising hopes of some stimulus package, we have managed to surpass the recent hurdle of 9400 convincingly on Nifty at the opening itself,” Sameet Chavan, Chief Analyst – Technical & Derivatives, Angel Broking Ltd, said.