Markets open positive: Sensex rallies over 400 points, Nifty above 9,140-mark; HDFC, ITC, RIL among major gainers

Sensex rallied over 400 points in early trade on Tuesday led by gains in index-heavyweights HDFC twins, ITC and Reliance Industries amid positive cues from global markets

FP Staff May 26, 2020 11:07:51 IST
Markets open positive: Sensex rallies over 400 points, Nifty above 9,140-mark; HDFC, ITC, RIL among major gainers

Shares tracked global markets higher on Tuesday, led by gains in beaten down financial stocks, with investor sentiment lifted on stimulus hopes and as economies reopened from coronavirus lockdowns.

Sensex rallied over 400 points in early trade on Tuesday led by gains in index-heavyweights HDFC twins, ITC and Reliance Industries amid positive cues from global markets. After touching a high of 31,086.70 in opening session, the 30-share index was trading 373.67 points or 1.22 percent higher at 31,046.26.

Similarly, NSE Nifty surged 108.70 points or 1.20 percent to 9,147.95.

Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments, said, "The Nifty50 opened with a gap up this morning but what needs to be seen is if we are able to sustain above the level of 9,175 which is a key resistance for this week. If we are successful in doing that, we could see the index climb to levels closer to 9300 by Thursday which is the month-end expiry. The support point to keep an eye on would be 8,950. If we trigger that on the downside, we could slide to 8,750."

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.6 percent as investors looked past Sino-US trade tensions and focused on more stimulus in China and a gradual reopening of the world economy. ITC was the top gainer in the Sensex pack, rallying over 4 percent, followed by IndusInd Bank, HDFC Bank, Tata Steel, Titan, UltraTech Cement and L&T.

On the other hand, Bharti Airtel, TCS, Hero MotoCorp and Infosys were among the laggards.

In the previous session on Friday, the BSE barometer ended 260.31 points or 0.84 percent lower at 30,672.59, while the broader Nifty settled 67 points or 0.74 percent down at 9,039.25.

Foreign portfolio investors offloaded equities worth Rs 1,353.90 crore in the capital market on Friday, provisional exchange data showed.

Markets were closed on Monday for 'Id-Ul-Fitr'.

Besides stock-specific action, domestic investors were enthused by positive cues from global markets as lockdown restrictions eased world over, traders said.

According to Ajit Mishra, VP - Research, Religare Broking, markets may see some respite this week due to oversold positions, especially in the banking space, but sustainability would be tough at the higher levels, a PTI report said.

Further, volatility will prevail as COVID-19 cases spike in the country, he added.

The number of coronavirus cases in India climbed to 1,45,380 and the death toll touched 4,167, as per health ministry data.

Globally, the number of cases linked to the disease has crossed 54.95 lakh.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading significantly higher.

International oil benchmark Brent crude futures were trading 1.29 percent higher at $35.99 per barrel

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