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Home / Business / Covid-19 lockdown: Restart lifts sentiment

Covid-19 lockdown: Restart lifts sentiment

Sensex looks up as lockdown curbs are eased
While the rally was led by financials and FMCG stocks, investors ignored the disappointing economic data for the March quarter and gloomy predictions of the domestic economy contracting this fiscal.

Our Special Correspondent   |   Mumbai   |   Published 02.06.20, 12:21 AM

The Sensex on Monday zoomed 879 points as lockdown restrictions began to ease in most parts of the country even as investor sentiment was boosted by positive global cues.

While the rally was led by financials and FMCG stocks, investors ignored the disappointing economic data for the March quarter and gloomy predictions of the domestic economy contracting this fiscal.

The Sensex began on a positive note at 32906.05 and soared 1250 points during the day to hit a high of 33673.83. It later settled 879.42 points, or 2.57 per cent, higher at 33303.52. The Nifty surged 245.85 points or 2.57 per cent to finish at 9826.15.

A key highlight of the day was the participation of foreign portfolio investors (FPIS). Provisional data from the NSE showed that they were net buyers of almost Rs 1,600 crore.

“Globally investors shrugged off political unrest in the US and worries about a second wave of the virus. Positive sentiments were also supported after US President Donald Trump avoided reigniting a trade war with China,’’ Siddhartha Khemka of Motilal Oswal Financial Services, said.

He added that forecast of a normal monsoon also gave a fillip to sentiment.

“Buoyant Asian and European markets helped sentiments. Volumes were healthy, suggesting high delivery activity. Financials, materials and auto stocks did well while pharma stocks came under selling pressure,' Deepak Jasani of HDFC Securities said.

However, analysts caution that markets may again come under pressure given the disappointing forecast for the domestic economy and poor corporate earnings.

In the Sensex pack, Bajaj Finance was the top gainer, rising around 11 per cent. It was followed by Titan, Tata Steel and SBI. Sun Pharma, Nestle India and UltraTech Cement were among the laggards.

All sectoral indices ended on a positive note with the BSE consumer durables rallying 6.56 per cent, followed by metal, finance, bankex, energy, auto and realty indices.

The broader market also outperformed the benchmark with the Nifty midcap and small cap rising by over 3 per cent.

Asian shares hit three-month highs as progress on re-opening economies helped offset jitters over riots in the US cities and unease over Washington’s power struggle with Beijing.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul settled up to 3 per cent higher, and those in Europe opened with significant gains.

Back home, the home ministry on Saturday said ''Unlock-1'' will be initiated in India from June 8 under which the nationwide lockdown will be relaxed to a great extent, including opening of shopping malls, restaurants and religious places.

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