Sensex rallies over 1,265 points; Nifty reclaims 9,100 level

Mahindra and Mahindra was the top gainer in the Sensex pack, surging over 16 per cent, followed by Maruti, Titan, Bajaj Finance, HDFC, Bajaj Auto and Hero MotoCorp. On the other hand, HUL, Tech Mahindra, IndusInd Bank and Nestle were the laggards.

Mumbai: Equity benchmark Sensex rallied over 1,265 points on Thursday, led by robust buying in auto, financial and IT stocks amid hopes of a second stimulus package from the government to mitigate the blow of the Covid-19 lockdown.

After hitting a high of 31,225.20 during the day, the 30-share BSE barometer ended 1,265.66 points or 4.23 per cent higher at 31,159.62.

Similarly, the NSE Nifty soared 363.15 points, or 4.15 per cent, to 9,111.90.

Top gainers and losers

Mahindra and Mahindra was the top gainer in the Sensex pack, surging over 16 per cent, followed by Maruti, Titan, Bajaj Finance, HDFC, Bajaj Auto and Hero MotoCorp.

On the other hand, HUL, Tech Mahindra, IndusInd Bank and Nestle were the laggards.

"Indian markets started trading on a positive note taking upbeat cues from its Asian peers in the morning session as policymakers discussed the process of reopening the global economy as data showed a slowing spread of Covid-19," said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.

During the afternoon session, market further strengthened on back of expectations of second stimulus package estimated at around Rs 1 lakh crore and focus on helping small and medium businesses, which led to both broad-based buying and also triggered some short covering, he added.

A Bank of America Securities report said the Centre may soon announce another fiscal package which may be almost similar to the Rs 1.75 lakh crore stimulus unveiled last month.

Global market

Elsewhere in Asia, bourses in Shanghai, Hong Kong, and Seoul ended on a positive note, while Tokyo closed in the red.

Stock exchanges in Europe started significantly higher. Meanwhile, the rupee provisionally settled 6 paise higher at 76.28 against the US dollar.

Brent crude futures, the global oil benchmark, rose 4.2 per cent to USD 34.16 per barrel.

Investor wealth jumps Rs 3.98 lakh crore

Investor wealth climbed Rs 3,98,934.79 crore after markets rallied amid hopes of a second stimulus package from the government.

Led by the rally in equities, the market capitalisation of BSE-listed companies advanced Rs 3,98,934.79 crore to Rs 1,20,81,461.88 crore.

"Indian markets in sync with global markets were up again today on expectations of infections peaking out and for more stimulus measures to be announced. This uptrend seems to be a short-term bear market rally and may not be sustainable," Geojit Financial Services Head of Research Vinod Nair said.

"In India, there is speculation that the package may help worst affected sectors and MSMEs may get some relief in the package to be announced," he added.

(PTI Report)