Home Fashion Vogue Sensex surges 625 points: Top factors driving the market rally today

Sensex surges 625 points: Top factors driving the market rally today

NEW DELHI: Hopes of a massive US stimulus outweighed the worries over the devastating economic impact of the coronavirus as domestic equity indices surged in Thursday trade. Gains in the global market also lifted the sentiments.
At 11:42 am, BSE flagship Sensex was up 625 points or 1.64 per cent at 38,693 while NSE benchmark Nifty added 174 points or 1.55 per cent to 11,422. All sectors saw buying, however, some FMCG names were under pressure.
India VIX plunged 4.46 per cent, reflecting easing expectations of volatility by traders. The index was trading at 18.65.
In the 30-share pack Sensex, Bajaj Auto was the biggest gainer, up 6.60 per cent at Rs 3,069.65 as investors expected improvement in auto sales. It was followed by IndusInd Bank, Bajaj Finance, Bajaj Finserv, Axis Bank and HDFC that gained in the range of 2-5 per cent.
On the other hand, ONGC, Titan, Nestle India and NTPC dropped upto 2 per cent in Mumbai trading.
Broader market indices were underperforming their headline peers as Nifty Smallcap climbed 0.91 per cent while Nifty Midcap added 0.95 per cent. Broadest index on NSE, Nifty 500 was up 1.15 per cent.

Top factors driving the market:US stimulus
Hopes of a massive stimulus package that may be announced within days helped boost sentiments across the globe as it will aid swift economic recovery. This is even more important when US gross domestic product plunged at a 31.4 per cent annualized rate in the second quarter, the steepest drop since the government started keeping records in 1947.
US Treasury Secretary Steven Mnuchin on Wednesday said talks with House Speaker Nancy Pelosi made progress on COVID-19 relief legislation, and the House of Representatives postponed a vote on a $2.2 trillion Democratic plan to allow more time for a bipartisan deal to come together.
Global markets upbeat
Upbeat global markets also lifted the mood on Dalal Street
. S&P500 futures rose 0.6 per cent in Asia, extending Wall Street shares’ rebound overnight after strong employment data and talk of progress on long-delayed COVID-19 relief legislation. On Wednesday, the S&P500 gained 0.83 per cent and the Nasdaq Composite added 0.74 per cent
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.3 per cent, with Australian shares rising 1.4 per cent
But regional trade was thinned by system glitches at the Tokyo Stock Exchange (TSE) and holidays in Greater China and South Korea.
Bullish macro numbers
A spate of economic data mostly surprised to the upside, with ADP National Employment index blowing past analyst expectations and pending home sales surging to an all-time high.
Contracts to buy the US previously owned homes surged to a record high in August, suggesting housing market activity was gathering speed amid record-low mortgage rates. The National Association of Realtors said on Wednesday its Pending Home Sales Index, based on contracts signed last month, jumped 8.8 per cent to an all-time high of 132.8 last month.
Unlock 5
The government announced guidelines to open more activities outside containment zones from October 1, which also cheered investors. They include cinema halls, sports activities, entertainment parks and B2B exhibitions.
Moreover, the central government also barred imposition of any local lockdown outside the containment zone, lifting the threat of disruption of businesses in pockets.
Auto sales numbers Encouraging auto sales numbers also boosted the morale of the investors. Maruti Suzuki India posted total sales of 1,60,442 units in September 2020, a growth of 30.8 per cent over the same period previous year. However, the performance has to be seen in the context of lower base of September 2019.
Similarly, Bajaj Auto clocked 10 per cent growth in its sales, led primarily by two-wheelers. The company sold 4,41,306 units in September. The export were the highest ever at 2,12,575 units, the company said.

Read More

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

How can I tell the difference between the flu and COVID-19?

Last Updated : Oct 01, 2020 01:54 PM IST | Source: AP Body aches, sore throat, fever, cough, shortness of breath, fatigue and headaches are symptoms shared by the two. How can I tell the difference between the flu and COVID-19?It’s impossible to tell without a test. Influenza and COVID-19 have such similar symptoms, you…

Cardiac arrest common in sick Covid-19 patients

Photo for representational purpose only. iStock New York, October 1 Cardiac arrest is common in critically ill patients with Covid-19 and is associated with poor survival, particularly among patients aged 80 or older, say researchers. The findings, published in the journal The BMJ, could help guide end-of-life care discussions with critically ill patients with Covid-19…

Beware: Vitamin D deficiency can make you obese and lead to stunted growth

Vitamin D, or the ‘Sunshine Vitamin as it is also known as, is one of the essential nutrients that makes your bones and teeth stronger, wards off infections and diseases and keeps you cheerful. This fat-soluble vitamin can also bring down your risk of cancer, autoimmune diseases, heart disease and diabetes. But unfortunately, as many…

COVID-19 cases decline, deaths increase in Chandigarh as September ends

Naina MishraTribune News ServiceChandigarh, October 1 As September comes to an end, the Union Territory has started to witness a decline in the number of positive COVID-19 cases, and daily tests.  However, COVID deaths have increased with every passing week.  September has recorded 100 COVID-19 deaths whereas August reported only 39 deaths.  At least three…

Recent Comments