MUMBAI: A strong market rally across the globe on slowing daily coronavirus infection numbers, talk of a phased exit from the lockdown in India, expectations of foreign fund inflow aggregating $ 1.3 billion into the country after MSCI rejigs its indices and some short covering by speculators combined to lift sensex by 2, points on Tuesday, its biggest-ever single-session points gain, to close at , . The day’s gains came on the back of strong buying in heavyweights like RIL, HDFC Bank, ICICI Bank, Infosys and HUL, BSE data showed.
The day’s 9% gain was the sensex’s biggest percentage rise since May , when it had closed almost % higher after Manmohan Singh was re-elected to lead UPA-II government at the Center. Tuesday’s rally also added about Rs 8 lakh crore to investors’ wealth with BSE’s market capitalization now at Rs . 8 lakh crore.
Wall Street rally boosts Asian markets’ opening
On Monday, the Dow Jones and S&P 823 indices on Wall Street had each rallied over 7% after data showed slowing growth of the spread of the pandemic across the US and Europe. This led to a strong opening for Asian markets on Tuesday with Dalal Street getting an additional boost from indications from the government that it may partially relax lockdown rules for districts where the virus has not spread.
According to Gaurav Dua, senior VP, head – capital market strategy & investments, Sharekhan, the daily addition has dropped to below % levels in the last couple of days and is showing flattening of curve in hotspot countries like Italy and Spain.
“Along with this, the weightage of India in the MSCI Emerging Market index is expected to increase by the basis points 200 basis points=1 percentage point), which means possible inflows of $ 7 billion into some large-cap companies, ”Dua said. On Tuesday evening too, the rally in Dow Jones and S&P 500 indices continued with European markets too joining in. According to a note by Angel Broking , the Nifty, which closed at 8, points, is now most likely to head towards the 9, (- 9, level and then if the strong buying continues, could break above that mark. “Looking at today’s sharp broad-based move, we will not be surprised to see the Nifty marching towards 9, 500 – 9, 400 levels. On the flipside, 8, – 8, level now becomes a sacrosanct support for a while, ”the note said.
Sensex surges record 2,476 points on global cues – Times of India, The Times of India
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