Sensex, Nifty jump as global cues turn positive, uncertainty remains

Indian stock markets on Tuesday edged higher citing positive global cues as investors showed renewed optimism over an experimental Covid-19 vaccine by Moderna Inc.

At around 9:30 am, BSE Sensex was trading 213.86 points higher at 30,242.84, while NSE Nifty was trading 0.53 per cent higher at 8,869.70. By 9:50 am, Sensex surged over 500 points while Nifty regained 8,900 points.

Bharti Airtel shares jumped sharply by over 5 per cent after it declared fourth quarter company results. While the company did report a surprise loss due to commitment towards spectrum charges, the company reported healthy consolidated year-on-year revenue growth for the March quarter.

Some of the other top gainers in morning trade are ONGC, with almost 7 per cent rise. Tata Motors, HDFC, Kotak Bank, Maruti, ICICI Bank were some of the top gainers.

It may be noted that all Nifty sectoral indexes except Nifty PSU Bank was trading positive.

Despite the sharp rise in morning trade, uncertainty remains at large in the domestic markets as cases keep rising sharply in the country.

While opening up of key businesses in all non-containment zones was cheered by the market, the fact that the government’s economic revival package focuses on the medium-term has dented sentiments.

Many experts indicate that India’s economic revival plan has little cash support and a bulk of it is through loan and job guarantee schemes.

This could lead to near-term uncertainty in the market as businesses may not be able to get any any cash relief on immediate basis under the approved economic revival package.

Globally, markets all over the world including Asia showed optimism as more countries reopen businesses besides are rise in oil and finally the experimental Covid-19 vaccine, which produced protective antibodies in small group of volunteers.