Sensex surges 2% as banks, financials gain

‘Easing COVID concerns aid markets’

Equity benchmarks surged about 2% on Friday led by gains in banking and financial stocks.

The S&P BSE Sensex gained 975.62 points, or 1.97%, to 50,540.48. In the Sensex only PowerGrid was a laggard.

The NSE Nifty 50 index rose 269.25 points, or 1.81%, to 15,175.30.

Markets rebounded sharply tracking firm global markets and supportive local cues. Other than banking and finance, realty and auto stocks rallied, said Ajit Mishra, VP, research, Religare Broking Ltd.

“We feel global cues will continue to dictate the trend in the near future. The recent buoyancy in banking and financials is certainly encouraging and participation of other sectors on a rotational basis would further fuel the recovery,” Mr. Mishra added.

“The easing covid concerns, appreciation in Indian Rupee and recent positive global data helped the market,” said Vinod Nair, head of research, Geojit Financial Services.

On the outlook, Nirali Shah, head of equity research, Samco Securities, said since global macros have been finding a grip amidst the pandemic, domestic benchmark indices may continue to dilly-dally in the near future.

“Adding to this, the Fed indicated that they could discuss scaling back the massive asset purchase programme if the current recovery pace continued,” she said.

“With a hint towards liquidity tapering, bond markets continued to witness a sell-off and going forward, if there is lower buying support from the Fed, the impact would be clearly visible in price moves. Turnaround results can keep the street going at least for a couple of weeks more,” she added.

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