Markets rally for 2nd day, Sensex up 437 pts
IT, FMCG stocks sparkle amid firm global cues
image for illustrative purpose
Mumbai: The Sensex and Nifty defied gravity for the second straight session on Wednesday as investors scooped up IT and FMCG shares amid a firm trend in global markets.
A recovering rupee and global drugmakers' assertion that their Covid-19 vaccines will work against a new coronavirus strain the UK further shored up investor confidence, traders said.
The 30-share BSE Sensex rallied 437.49 points or 0.95 per cent to close at 46,444.18. Similarly, the broader NSE Nifty surged 134.80 points or 1 per cent to 13,601.10. HUL was the top gainer in the Sensex pack, spurting 2.67 per cent, followed by Infosys, M&M, SBI, ITC, IndusInd Bank, Bajaj Finance, Asian Paints, Bharti Airtel and TCS.
Only four index components closed lower -- Titan, PowerGrid, NTPC and HDFC, shedding up to 0.81 per cent. Global markets were largely positive after drug companies like BioNTech, Moderna and AstraZeneca exuded confidence that their Covid-19 vaccines will be effective against the new virus strain reported in the UK.
However, gains were capped after US President Donald Trump hinted at vetoing the $900 billion economic aid package passed by the Congress due to the "ridiculously low" $600 aid for individuals. "Market is continuing its rally amidst concerns over new virus strain, lockdown and weak global cues, fuelled by IT, mid and small caps.
The additional stimulus announced in the US did not gain much momentum in the global market as the quantum of the benefit was well-factored, but Europe and emerging markets are maintaining the buoyancy. "In the coming days, the market will also focus on Brexit trade deals which is expected to be finalised soon and fallout in the economy due to strict lockdown," said Vinod Nair, Head of Research at Geojit Financial Services.
