Markets open higher as Sensex climbs over 1,300 points, Nifty above 8,400
Indian shares opened sharply higher on Tuesday, mirroring firm cues from other global markets amid signs of a slowdown in coronavirus-related deaths in Europe.Domestic markets opened in green after tracking gains in Asian markets, even as domestic Covid-19 cases continue to rise in the country.At around 9:35 am, BSE Sensex was trading 1,113.65 points or 4.04 percent higher at 28,704.60, while NSE Nifty was up 325.05 points at 8,408.85.
By 10 am, Sensex was up over 1,330 points and Nifty was closing in on 8,500 points.Investors were also reacting to Prime Minister Narendra Modi's suggestion that all ministries must prepare "business continuity plans" post-April 14.
Furthermore, some of the top gainers in early trade were Induslnd Bank, Mahindra and Mahindra, ICICI Bank, Kotak Mahindra Bank and HDFC Bank.IndusInd Bank shares jumped as much as 15
percent, while ICICI Bank, HCL Technologies, Axis
Bank and Mahindra & Mahindra climbed 7-10 percent. Bajaj Finance shares fell nearly 5 percent. The company said it has lost nearly 350,000 customers over the past 10 days.
Bajaj FinServ dropped almost 2 percent.Canara Bank rallied 3 percent after slashing its marginal cost of funds-based lending rates (MCLR) on loans and advances.Godrej Consumers Products surged 5.7 percent. The company said it plans to introduce new products in the sanitizer category following a shift in consumer habits and preferences impacted by the coronavirus pandemic.
All sectoral Nifty indices also opened with gains as Nifty Bank emerged as the sectoral leader, surging over 5 percent. The Nifty Pharma, FMCG, Auto, Metal and IT indexes also gained.
Despite the early rise, domestic stock markets remain volatile and there are several reasons which could lead to further dampen market mood. For instance, India’s services activity has contracted to a five-month low in March due to the 21-day lockdown.Analysts say the mood of investors in domestic markets will weigh heavily on government's decision on the lockdown situation.Globally, Asian markets had a good run after signs of slowdown in Covid-19 related deaths. Nikkei futures gained 2.3 percent while Hong Kong futures climbed.
US share markets also had a good last session due to a fall in the daily death toll in New York, which appears to have become the country’s coronavirus hotspot. The country is bracing for one of the toughest weeks as death toll keeps mounting.
However, in India, domestic investors are keenly awaiting a word from the government on the situation after April 14 when the lockdown ends. With rising cases, there are chances that it may be extended, but the government is yet to make an announcement on the same.