Markets sustain momentum amid global rally; IT, auto stocks spurt

Mumbai, July 2

Benchmark indices defied gravity for the second straight day on Thursday, largely in tandem with global markets which ticked higher following positive results from a coronavirus vaccine trial.

A sharp recovery in the rupee added to the momentum, traders said.

After soaring 600 points during the session, the 30-share BSE Sensex settled 429.25 points, or 1.21 per cent, higher at 35,843.70.

The NSE Nifty surged 121.65 points, or 1.17 per cent, to close at 10,551.70.

M&M was the top gainer in the Sensex pack, jumping 6.05 per cent, followed by Titan, Tata Steel, HCL Tech, Infosys and TCS.

On the other hand, Axis Bank, HUL, Kotak Bank, ICICI Bank and Bharti Airtel tumbled up to 2.24 per cent.

Global equities marched higher after Germany’s BioNTech and US pharmaceutical giant Pfizer reported positive preliminary results from a joint project for a potential COVID-19 vaccine.

“The Indian indices traded in sync with global cues and ended the day with gains. The gains were supported by IT and Auto indices. Global indices were positive following news of encouraging trials of a vaccine being developed for the virus. Global markets are awaiting US employment figures, due out later today, to see the progress of the US economy and its resultant impact on global economic growth. 

“Indian benchmark indices have sustained their momentum while upsides seem to be limited. Investors are advised to watch out for any signs of trend reversal and keep booking short term profits,” said Vinod Nair, Head of Research at Geojit Financial Services.

Sector-wise, BSE, IT, auto, consumer durables, teck, industrials, capital goods and power indices jumped up to 2.91 per cent, while bankex ended in the red.

Broader BSE mid-cap and small-cap indices spurted up to 1.04 per cent.

On the currency front, the rupee appreciated 56 paise to settle at 75.04 against the US dollar. 

In rest of Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended with significant gains.

Stock exchanges in Europe were also trading around 1 per cent higher in early deals.

International oil benchmark Brent crude futures rose 0.86 per cent to USD 42.39 per barrel.

Meanwhile, India’s COVID-19 tally zoomed past six lakh on Thursday with a single-day increase of 19,148 cases, just five days after it crossed the five-lakh mark, while the death toll rose to 17,834, according to the Union Health Ministry data. PTI

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