5 Reasons Why Sensex Zoomed 613 Points Today

Indian share markets extended gains as the session progressed and ended on a strong note.

Benchmark indices continued their positive momentum for the second consecutive day today as India reported less than 3 lakh daily Covid-19 cases.

At the closing bell, the BSE Sensex stood higher by 613 points (up 1.2%).

Meanwhile, the NSE Nifty closed higher by 185 points (up 1.2%).

Mahindra & Mahindra and Bajaj Auto were among the top gainers today.

Bharti Airtel and ITC, on the other hand, were among the top losers today.

The SGX Nifty was trading at 15,150, up by 204 points, at the time of writing.

The BSE Mid Cap index and the BSE Small Cap index ended up by 2% and 1.3%, respectively.

Sectoral indices ended on a positive note with stocks in the auto sector, consumer durables sector, and power sector witnessing most of the buying interest.

Telecom stocks, on the other hand, witnessed selling pressure.

Shares of Adani Transmission and Hindustan Zinc hit their respective 52-week highs today.

US stock futures are trading on a positive note today with the Dow Futures trading up by 56 points.

The rupee is trading at 73.04 against the US$.

Gold prices for the latest contract on MCX are trading down by 0.3% at Rs 48,344 per 10 grams.

Here are the Top 5 Factors Why Indian Share Markets Rallied Today

The decline in Covid-19 Cases: India reported 2.6 lakh fresh cases in the last 24 hours, the lowest in 28 days, the health ministry's May 18 data showed.

The national recovery rate has improved to 84.8%. In Maharashtra, the worst-hit state reported the number of fresh cases at 26,616 remained below 30,000.

The market is discounting progressive lifting of widespread lockdowns starting in early June.

Better Earnings: The current market rally was also supported by the better earning from India Inc. Pharma major Cipla, FMCG giant Colgate-Palmolive and private lender Federal Bank posted healthy numbers for the quarter ended March 2021.

Macro Data: Recent macroeconomic data was better than expected. Consumer Price Index (CPI)-based retail inflation came in at a three-month low of 4.3% in April versus 5.5% in March and 7.2% in April 2020.

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Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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