By 9:50 am, Sensex surged to rise over 500 points, while Nifty surpassed 8,900 points.
- Markets gained on Wednesday after starting in negative territory
- BSE Sensex was up over 500 points at around 9:50 am
- Nifty rose in early trade to surpass 8,900 points
Indian markets quickly reversed losses on Wednesday after opening in red even as investors remain wary about a possible extension of the nationwide lockdown beyond April 14.
At around 9:32 am, BSE Sensex was up by 63.17 points or 0.21 per cent at 30,130.38, while Nifty climbed 46.75 points to cross 8,800 points. By 9:50 am, Sensex surged further to rise over 500 points, while Nifty surpassed 8,900 points.
But analysts expect volatility to continue as uncertainty remains over the fate of thousands of businesses which are shut due to the lockdown.
Some of the stocks which gained on Nifty were HCL Tech, Gail, HDFC, HUL and Cipla, while Bajaj Finance, ICICI Bank and Axis Bank incurred losses.
Globally, stock markets around the world remained cautious as US stock markets gave up gains after a firm rally. It is worth noting that deaths in the US jumped by 1,800 the country’s highest single-day rise.
In the Asian market, too, stocks failed to see the sharp gains garnered in the previous two sessions. The oil market has also kept global trade on the edge due to wild swings seen over the past few days.
However, global analysts are concerned about the future. JP Morgan analysts released a note saying that Q1 earning season results, which will reveal the depth of the virus impact, may send markets around the globe sinking.
Data shows the recent move higher has been accompanied by short-covering and de-risking rather than active risk taking on the long side, the note added.
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