Domestic stock markets on Wednesday opened higher despite the government’s order to extend the lockdown to May 3. Gains in early trade are also a result of improved performance in Asian markets.
At around 9:35 am, BSE Sensex was up over 550 points or over 1.8 per cent at 31,247.25 points, while NSE Nifty was trading 1.8 per cent higher at 9,161.10.
There has been a marked improvement in Indian stock markets from the regular bloodbaths witnessed just a week ago. Analysts say markets, though volatile, are regaining footing as global stocks gradually recover.
One good news is that lockdown 2.0 has not yet made investors nervous yet — something that was witnessed when PM Narendra Modi announced the first lockdown.
Some of the top gainers on Nifty were UPL, Hindustan Unilever, Sun Pharma, Britannia, Axis Bank while Bajaj Finance, Maruti Suzuki and Kotak Mahindra Bank.
Investors on D-Street are also awaiting Q4 company results of IT Major Wipro. Most brokerages expect the company to report flat revenue.
Globally, stock markets seem to be climbing after hitting consecutive lows for a long period.
While US stocks climbed on Tuesday, Asian share markets also consolidated.
China moved again to cushion its economy, cutting a key medium-term interest rate to record lows and paving the way for a similar reduction in benchmark loan rates.
While not unexpected, it did help MSCI’s broadest index of Asia-Pacific shares outside Japan edge up 0.3 per cent to a fresh one-month top.
Shanghai blue chips, however, eased 0.2 per cent.
Japan’s Nikkei was still off 0.5 per cent, though that followed a 3 per cent jump the previous session. E-Mini futures for the S&P 500 dipped 0.5 per cent, following a 3 per cent rise in New York.
“Flattening infection curves and the thoughts of more stimulus have lifted all boats,” said Stephen Innes, chief global market strategist at AxiCorp.
“However, appearances can be deceiving as behind the headlines lie the most gnarly storm clouds building, suggesting there is still much to be worried about.”
(With inputs from Reuters)
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