Sensex Rallies 300 Pts On RIL, HDFC Bank, ICICI Bank Surge

Nearly 41,000 Covid-19 infections recorded in last 24 hours, markets look jittery

Updated on: 23 March 2021 3:36 pm

Sensex started up 300 points on Tuesday, tracking a revival in index majors Reliance Industries, HDFC Bank and ICICI Bank, although global markets showed mixed trends.

The 30-share BSE index traded 301.17 points or 0.61 per cent higher at 50,072.46, and the broader NSE Nifty advanced 94.40 points or 0.64 per cent to 14,830.80.

IndusInd Bank was the top gainer in the Sensex pack, rising around 2 per cent, followed by Axis Bank, HDFC Bank, ICICI Bank, UltraTech Cement and Maruti. PowerGrid, Asian Paints, Tech Mahindra and NTPC were trailing in the morning trade.

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Sensex ended 86.95 points or 0.17 per cent lower at 49,771.29, and Nifty dipped 7.60 points or 0.05 per cent to 14,736.40, at the close on Monday. Foreign institutional investors (FIIs) were net sellers in the capital market on Monday as they offloaded shares worth Rs 786.98 crore.

Domestic equities look to be modestly good at the moment, feels Binod Modi, Strategy Head at Reliance Securities. “A resurgence of Covid-19 cases in various parts of the country and resultant restrictions have clearly made investors jittery. This could continue to restrict market performance in the near term unless the virus spread is controlled,” he alerts.

The country recorded 40,715 fresh infections in the last 24 hours. Maharashtra, Punjab, Gujarat and Karnataka have been the worst hit so far in the second wave of infection.

“The recent drop in crude prices and a resilient rupee against dollar offer comfort, though. We further believe that the 10-year US treasury yield is unlikely to move beyond a limit, given the rising yields factor in better prospects of economic recovery,” Modi says.

US markets finished higher on Monday mainly led by a sharp rebound in technology stocks, he points out, saying that investors also got comfort after AstraZeneca cited that its Covid-19 vaccine was safe and 79 per cent effective in preventing the virus.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading in the red in mid-session deals. The global oil benchmark Brent crude was trading 0.91 per cent lower at $64.03 per barrel.