Sensex, Nifty end higher as easing curbs outweigh Covid-19 surge

Indian shares ended higher on Wednesday, led by gains in Reliance Industries and financials, as optimism around reopening of the economy and buoyant global risk sentiment trumped concerns over a surge in domestic Covid-19 infections.

The NSE Nifty 50 index ended up 0.69{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} to 10,116, while the benchmark S&P BSE Sensex gained 0.86{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} at 34,247.05.

“The rally has been happening on the anticipation of the re-opening of the domestic economy. Nifty is able to sustain above 10,000 levels, which is also giving a positive bias to markets,” said Vinod Nair, head of research, Geojit Financial Services Ltd.

Heavyweight Reliance Industries added 2.3{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} and was a top boost to the Nifty 50 index, while IndusInd Bank Ltd surged 7.7{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58}, to end as the top gainer in the Nifty index.

The Nifty banking index and the financial index ended up 1.81{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} and 1.15{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58}, respectively.

India reopened shopping malls and restaurants this week, but the number of cases continues to rise – jumping to 276,500 as of Wednesday morning, including 7,745 deaths.

The number of infections in the national capital of Delhi will climb to more than half a million by the end of July but it does not have the hospital capacity to handle such an outbreak, the city-state’s deputy chief minister said on Tuesday.

“Rising infections are a concern and a major reason for Indian markets to underperform the global rally, which is expected to continue in the near-term,” Nair said.

Hero Motocorp Ltd closed down 4{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58} after the world’s largest two-wheeler maker reported a lower March-quarter profit.

Shares of Panacea Biotec Ltd jumped as much as 20{b1ee4ac4d8d7b8e1af61a560a11ca52574b8103b547ccac8037ce0cdf9e7ba58}, after the Indian biotech firm said on Wednesday it would partner with US-based Refana Inc to make a potential vaccine for Covid-19.