Sensex, Nifty surge over 30% from March lows; check what aided today’s rally in markets

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Published: June 2, 2020 4:22 PM

With today's gains, the 30-share index Sensex is up 32 per cent from its March low of 25,639. While the broader Nifty 50 index gained 33 per cent from its 52-week low of 7,511

Sensex, NiftySensex hit the day’s high of 33,866, while the broader Nifty 50 index touched 9,995.66

Buoyed by positive global cues and reassurance by Prime Minister Narendra Modi that India would get its growth back, headline indices BSE Sensex and Nifty 50 posted decent gains on Tuesday. Indian share market shrugged off the Moody’s credit rating downgrade and traded higher throughout the session. In the intraday session, Sensex hit the day’s high of 33,866, while the broader Nifty 50 index touched 9,995.66. Among top Sensex gainers were Bajaj Finance, Kotak Mahindra Bank, IndusInd Bank, HDFC and Axis Bank. While the pack of losers were led by Maruti Suzuki which included ITC, NTPC, Nestle India, Hero MotoCorp and Bharti Airtel. “Indian markets shrugged off news regarding Moody’s credit rating downgrade, which was trumped by the expectation of the economy opening up. The government has again reiterated its commitment to continued reforms to strengthen the economy,” said Vinod Nair, Head of Research at Geojit Financial Services.

Sensex gains 32% from March lows: With today’s gains, the 30-share index Sensex is up 32 per cent from its March low of 25,639. While the broader Nifty 50 index gained 33 per cent from its 52-week low of 7,511.

Nifty Realty advances 5%: Except for Nifty FMCG index, all the sectoral indices finished trade in green. Nifty Realty index jumped nearly 5 per cent led by gains in Mahindra Lifespace Developers, Brigade Enterprises and Godrej Properties. Similarly, Nifty Financial Service advanced 3.18 per cent with Bajaj Finserv, Bajaj Finance and Kotak Mahindra Bank as top gainers.

What pushed Nifty closer to 10,000-mark: Out of 50 Nifty 50 index stocks, 36 scrips advanced while 14 declined. Top gainers were Bajaj Finserv, ZEEL. Bajaj Finance, Kotak Mahindra Bank and Tata Motors. On the other hand, the top five laggards were Coal India, Maruti Suzuki, BPCL, ITC and Dr Reddy’s Laboratories.

Broader markets: The broader market,  mid-caps and small-caps, participated in today’s rally as their sectoral indices on BSE closed 1.20 per cent and 1.83 per cent higher as compared to a 1.57 per cent rise in S&P BSE Sensex.

What should traders/investors do: “We may see some consolidation or profit-taking ahead, citing critical hurdle around 10,050 zone however the buoyancy in banking would help the index maintaining a positive tone. We reiterate our advice focusing on stock selection,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

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