Markets close on buoyant note: Sensex rises over 167 points, Nifty at 8,879; Bharti Airtel, ONGC among top gainers

Tracking the bullish global markets, the equity benchmarks began the session with a gap-up opening. Global investors’ sentiments are upbeat and oil extended rally on optimism that global economy would recover quickly following a successful early stage trial of a coronavirus vaccine by the US biotech firm Moderna.

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Sensex rose over 167 points on Tuesday led by gains in Bharti Airtel, HDFC and ITC amid positive cues from other Asian markets. After rallying over 700 points in a volatile session, the 30-share index finished 167.19 points or 0.56 percent higher at 30,196.17.

Similarly, the NSE Nifty advanced 55.85 points or 0.63 percent to end at 8,879.10.

Bharti Airtel was the top gainer in the Sensex pack, rallying around 11 per cent, followed by ONGC, UltraTech Cement, ITC, PowerGrid and NTPC.

On the other hand, IndusInd Bank, Reliance Industries, L&T and SBI were among the laggards.

Representational image. Reuters.

Meanwhile, the market paired most of the early gains due to pressure on the index heavy weight banking stocks. Market participants are also disappointed over the latest announced stimulus package which promises a very less direct spending by govt. Except for financials, other sectoral indices traded in green and provided support to market which ended session 0.6 percent higher. Bharti Airtel was up by 12 percent after posting better than expected result for Q4FY20. Adani Ports was up by 9 percent, ONGC by 6 percent. However UPL down by 10% amid govt notification of banning pesticides. Investors to keep a close eye on the Coronavirus situation, vaccine development and economic situation in the country.

Manish Hathiramani, Index Trader and Market Analyst, Deen Dayal Investments, told Firstpost, "The markets were unable to sustain at higher levels and from a high of over 200 points gave up most of their gains-the bears have taken over again and we are definitely in a weak market. The level to watch out for would be 8,850 on the spot Nifty where a fresh impetus of selling can be initiated and this can drag the markets down to 8,650," he said.

Analysts said the average revenue per user (ARPU) increase speaks of Bharti Airtel''s ability to command a price premium in the market, given that competition in the mid/high-end subscriber base has now moved to network quality.

Sumeet Bagadia, Executive Director, Choice Broking told Firstpost, "Finally Nifty settled its closing at 8,879-level with a gain of 55 points. However, in contrast, the BankNifty gave its closing at 17,486 level with the loss of 86 points on back of the private sector banking losing movement. At the starting of the trade, there was a jovial opening but the gaining momentum couldn’t last for long and started to fall. Compared to Nifty, the BankNifty fell further because of a few private banks. Yesterday, the Index gave a breakout of its range-bound movement in which the Index had been trading for last many days which suggests a downside movement. At the present level, the Index has strong support at 8,800 while upside resistance comes at 9,100-9,200 level.

According to traders, hopes of a vaccine for COVID-19 has enthused global investor sentiment.

In a significant development towards developing a vaccine for the coronavirus, an American biotechnology company Moderna has said its initial vaccine tests in people have shown promising results and can stimulate an immune response against the virus.

However, the rising number of cases in the country kept market participants on edge, traders said.

Rupee settles 25 paise higher at 75.66 against US dollar

The rupee appreciated 25 paise to settle at 75.66 (provisional) against the US dollar on Tuesday as reports of initial success in COVID-19 vaccine trial boosted investor sentiment world over.
Forex traders said besides the encouraging results in COVID-19 vaccine trial, higher opening of domestic equities and a weak greenback in overseas market supported the local unit.

At the interbank foreign exchange, the rupee opened at 75.71, then gained further ground to finally settle at 75.66 against the American currency, registering a rise of 25 paise over its previous close.

On Monday, the rupee had settled at 75.91 against the US dollar.

During the trading session, the domestic unit saw an intra-day high of 75.63 and a low of 75.79 against the greenback.

In a significant development towards developing a vaccine for the coronavirus, an American biotechnology company on Monday said its initial vaccine tests in people have shown promising results and can stimulate an immune response against the virus.

Globally, over 48.05 lakh people have been infected by the virus and over 3.18 lakh have died.

The dollar index, which gauges the greenback''s strength against a basket of six currencies, was trading 0.16 per cent down at 99.50.