Sensex Jumps 375 Points To Close Above 48000
The domestic markets witnessed some swift recovery from day’s lows and broke the two-day losing streak led by advances in Metals, Banks, and Financial stocks. The BSE Sensex climbed above 600 points from its day’s lows as investors cheered the broad basing of the vaccination program.
However, the resurgence of Covid cases will continue to hamper the investor sentiment as the surge has affected the economic recovery as well as the Dalal-Street. The markets will bounce back stronger if the key index breaks the upside levels of 14800-14900, said experts.
The BSE Sensex closed higher by 374.87 points at 48,080.67 with 18 of its constituents ending the day with gains. The Nifty-50 closed higher by 109.75 points at 14,406.75.
ITC, HDFC Twins, and ICICI Bank were the top boosts for Sensex on Thursday, April 22. ICICI Bank added over three per cent, while the others gained over two per cent each in the day’s trade. Buying interest in these index heavyweights led the Sensex to touch its day’s high of 48,143.16 after reaching the day’s low of 47,204.50 in the early trade.
Network 18 media and investments and TV18 broadcast were the top newsmakers of the day as the shares of the companies jumped over 14 per cent and 18 per cent respectively after strong quarter earnings. The Network 18 media posted a net profit of Rs 547 crore with a nine-fold jump, while the TV18 broadcast reported a 15 per cent growth in its EBITDA at Rs 808 crore.
The overall market performance supported gains as nearly 1737 closed with gains and 1128 shares saw selling pressure.
What led the markets higher amid volatility?
Analysts from various brokerage houses were of a view that the progress in the global markets, vaccination progress, and expectations of strong earnings outcome led the markets to bounce higher on Thursday. Several large-cap companies are yet to announce their quarterly earnings and which might result in a better movement in the market, analysts said.
“Amid increasing covid-19 cases, the domestic market recovered from its early losses backed by positive cues from global markets,” said Vinod Nair of Geojit Financial Services.
However, it was mainly the Metal and Banking stocks that backed the indices to post healthy gains after a tepid start at market opening. The Metal sector gained over two per cent in the afternoon trade and the Bank Nifty also gained nearly 700 points.
“Metals led the gains, with +2% gain by noon, but it was a bounce in the banking stocks that gave strength to the forenoon’s upsides,” said Anand James – Chief Market Strategist.