Sensex up over 300 points, Nifty above 9,400; IT stocks drag

Domestic markets opened positive on Thursday citing gains registered by Asian peers and ahead of the expiry of May futures and options contracts.

At 9:30 am, BSE Sensex was up 231.80 points at 31,837.02, while NSE Nifty was trading higher by 64 points at 9,379.25. By 9:40 am, Sensex was trading higher by almost 350 points.

Some of the top gainers on the stock market were IndusInd Bank, Axis Bank, ICICI Bank, L&T, ONGC, HDFC Bank, HDFC and Vedanta. On the other hand, ITC, Mahindra and Mahindra, Infosys, Wipro, HCL Tech and TCS were top laggards.

It may be noted that IT stocks declined for the second day in a row. Among Nifty sectoral indices, only IT and Pharma were trading in negative territory While Nifty Private Bank led the rally, closely trailed by Nifty Bank.

Another good news for investors is the fact that volatility in trade has significantly declined, but the fact that coronavirus cases are rapidly multiplying in India has kept investors on the edge.

While the May F&O contracts expiry and positive global cues have given a much-needed boost to stock market, it remains to be seen if stock markets can hold on to the momentum going forward.

A lot will depend on the government’s plan after May 31 when the fourth phase of the relaxed lockdown ends. Markets are likely to react positively to any further relaxations that may come as part of the new strategy from June 1.

Globally, Asian and US stocks rose citing growing optimism about an economic recovery, as investors put aside concerns about a possible standoff between the US and China over Hong Kong.

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