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Sensex Surges Over 1,550 Points As Banking Stocks Lead Rebound

Sensex Surges Over 1,550 Points As Banking Stocks Lead Rebound

Banking and financial services shares fuelled the strength in the markets

Domestic stock markets soared amid volatile trade on Thursday, tracking cautious gains in Asian peers as investors around the globe awaited details of a $2-trillion stimulus package in the US to fight the coronavirus (COVID-19) pandemic. The S&P BSE Sensex index soared as much as 1,564.13 points to touch 30,099.91, within 90 minutes after opening with a gain of 537.93 points at 29,073.71. The broader NSE Nifty 50 climbed to as high as 8,749.05 compared to its previous close of 8,317.85. While all the sectors traded in the green, banking and financial services shares fuelled the strength in the markets.

Here are 10 things to know about the rebound in markets today:

  1. At 10:48 am, the Sensex traded 1,248.13 points - or 4.37 per cent - higher at 29,783.91 while the Nifty was up 353.70 points - or 4.25 per cent - at 8,671.55. 

  2. In the 50-scrip Nifty basket, 43 shares enjoyed gains at the moment. Top percentage gainers were IndusInd Bank (up 35 per cent), ICICI Bank (12.53 per cent), Axis Bank (9.99 per cent), HDFC (9.85 per cent) and Bajaj Finserv (8.38 per cent). 

  3. HDFC Bank (up 7.56 per cent), HDFC (8.30 per cent), ICICI Bank (10.04 per cent) and Axis Bank (13.92 per cent) together accounted for a gain of nearly 800 points in the Sensex.

  4. Market breadth turned from mildly positive to extremely positive with an advance-decline ratio of 4:1. On the BSE, 1,373 moved higher against 420 that moved lower. On the NSE, 1,326 stocks advanced while 318 declined.

  5. However, analysts said they expect some volatility ahead of the expiry of monthly derivatives contracts (futures and options) due by the end of the session.

  6. Equities in other Asian markets made a cautious start following two days of rally, with MSCI's broadest index of Asia-Pacific shares outside Japan rising 0.3 per cent. Japan's Nikkei benchmark however declined 2.2 per cent.

  7. Australia's S&P/ASX 200 index rose 1.5 per cent in early trade - its third positive start in as many sessions, but also its most muted. Hong Kong futures were 1 per cent higher, and China A50 futures up 0.2 per cent. US stock futures rose 1 per cent, following the first back-to-back session rises on Wall Street in over a month.

  8. Overnight in the US, the Dow Jones Industrial Average and the S&P 500 indices rose 2.4 per cent and 1.2 per cent respectively, however the Nasdaq Composite dropped half a per cent following a Nikkei report that Apple was weighing a delay in the launch of its 5G iPhone.

  9. Senate leaders hope to vote on the plan later on Wednesday in Washington, but it still faces criticism. The bill includes a $500-billion fund to help hard-hit industries and a comparable amount for payments up to $3,000 to millions of US families. It cannot come soon enough, with potentially enormous weekly US initial jobless claims to appear in data due at 1230 GMT (6 pm in India).

  10. On Wednesday, the Sensex surged 1,861.75 points - or 6.98 per cent - to end at 28,535.78, and the Nifty settled at 8,317.85, up 516.80 points - or 6.62 per cent - from the previous close, extending gains to a second straight session.