Following global cues, the Indian equities rallied today with the Bombay Stock Exchange (BSE) Sensex soaring 2,476 points higher at 30,067. The jump is its one-day gain in percentage terms in more than 10 years. The investors had a field day in today's rally adding around Rs. 8 lakh crore to their wealth. The broader National Stock Exchange (NSE) Nifty also jumped around 9 percent to end at 8792. The significant jump is attributed to the declining trend in the new COVID-19 cases in the severely affected nations in Europe and the United States.
Global stocks in green
A news report in financial daily Mint highlighted a similar trend in the global markets. Dow futures jumped 3 percent after 7 percent rally overnight. Moreover, the Indian currency also gained 50 paise against the US dollar at 75.63/USD. All the 30 components of Sensex ended in the green today with Pharma and financial stocks leading the rally. IndusInd Bank emerged as the biggest gainer, surging more than 22% in today's trade. Other major gainers included Axis Bank (19%), M&M (15%), ICICI Bank (14%), HUL (14%), Maruti Suzuki (13%), and HCL Tech (12%).
Coronavirus cases to lead drive the stock market
Experts are of the opinion that in the near term, the market sentiment will be driven by in coronavirus cases globally as well as in India. The country reported 354 fresh cases from COVID-19 significantly down from 704 from a day earlier.
"Indian equities are significantly up today, following positive cues from global markets and reports from the banking sector on healthy growth in advances as well as comfortable deposit position. A rally on the Nifty to 10500 is possible in the next four weeks, where it will face still resistance. The year 2020 will continue to see high volatility even in the aftermath of the health crisis. It will be a great time to lap up stocks with a 3-year horizon but only after sufficient liquidity is kept aside for emergencies," said Amar Ambani, Senior President and Head of Research, YES Securities.
The Nifty financials and pharma stocks clocked more than 10% gains each. The push to pharma stocks got from the government as some restrictions on exports of 24 pharmaceutical ingredients and medicines have been lifted.