BSE Sensex closed above the 48000-mark for the first time
The BSE Sensex closed above the 48000-mark for the first time on Monday as investor sentiment got a boost after India approved two coronavirus vaccines over the weekend.
A strengthening rupee, positive global cues and encouraging macroeconomic data gave further impetus to risk appetite, traders said.
The 30-share BSE Sensex ended 307.82 points or 0.64 per cent higher at 48176.80. It touched a record intra-day peak of 48220.47.
The broader NSE Nifty jumped 114.40 points or 0.82 per cent to its fresh lifetime high of 14132.90. It scaled an all-time high of 14147.95 during the session.
ONGC was the top gainer in the Sensex pack, spurting 4.02 per cent, followed by TCS, HCL Tech, Tech Mahindra, Infosys, M&M, HUL, Sun Pharma and L&T.
Kotak Bank, Bajaj Finance, Asian Paints, HDFC Bank, PowerGrid and Titan were among the laggards, shedding up to 1.43 per cent.
India’s drug regulator on Sunday approved Oxford-AstraZeneca’s Covid-19 vaccine Covishield and indigenously-developed Covaxin of Bharat Biotech for restricted emergency use in the country.
Experts said the approvals and the likely commencement of inoculation process soon bode well for the markets and economy.
“Emboldened by the likely rollout of the vaccines this month, bulls went berserk, bolstered by IT and metal stocks with able support from pharma stocks. PMI data and renewed buying in select financials provided buoyancy across the broader markets,” said S. Ranganathan, head of Research at LKP Securities.
Sector-wise, BSE metal, IT, technology, oil and gas, auto, industrials and telecom indices rallied up to 5.34 per cent, while bankex and consumer durables slipped.
Global equities surged as vaccine rollout in multiple countries enthused investors. Bourses in Shanghai, Seoul and Hong Kong ended on a positive note, while Tokyo was in the red. Stock exchanges in Europe opened with significant gains.
Fitch Solutions on Monday said it has revised its forecast for the rupee to average stronger at Rs 75.50 to the dollar in 2021, from Rs 77.
For 2022, it revised the forecast to Rs 77 to a dollar from Rs 79 previously to account for a stronger 2021 forecast.
“We expect the rupee to trade only slightly weaker over the near term from current levels,” it said in a note.
It saw depreciatory pressure on the rupee due to worsening terms of trade from rising oil prices, further monetary easing, and bouts of risk-off sentiment being partially offset by the US dollar weakness and central bank foreign exchange intervention to combat imported inflation.
The rupee on Monday appreciated by 9 paise to close at 73.02 against the dollar, supported by sustained foreign fund inflows.
Sector-wise, BSE metal, IT, teck, oil and gas, auto, industrials and telecom indices rallied up to 5.34 per cent, while bankex and consumer durables slipped.
Broader BSE midcap and smallcap indices rose up to 1.42 per cent.
Foreign institutional investors purchased shares worth Rs 506.21 crore on a net basis on Friday, according to provisional exchange data.
"Over the longer term, the overvaluation of the rupee in real terms and higher inflation in India vis-à-vis the US should exert weakening pressure for the rupee," it said. The Indian rupee averaged Rs 74.10 to a US dollar in 2020