The Indian stock market on Friday opened on a positive note as Sensex zoomed over 400 points tracking gains in HDFC twins, ICICI Bank and Kotak Bank amid negative trends in global markets.
The 30-share BSE index soared 408.56 points or 0.82 per cent to settle at 49,973.42, and the broader NSE Nifty surged 119.35 points or 0.80 per cent to 15,025.40.
IndusInd Bank was the top gainer, advancing around 3 per cent, followed by Kotak Bank, SBI, HDFC Bank, ICICI Bank, and Bajaj Finance.
On the other hand, PowerGrid was the sole loser.
In the previous session, Sensex finished at 49,564.86, down 337.78 points or 0.68 per cent, and Nifty closed 124.10 points or 0.83 per cent lower at 14,906.05.
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“Assumption of second wave of Covid-19 to peak-out by the end of May or mid of June holds and the adverse impact of the second wave should not be felt beyond the first quarter of 2021-22,” said Binod Modi Head-Strategy at Reliance Securities.
The number of Covid cases in India has dropped as the nation recorded below 3 lakh cases daily. With the fresh cases, India's total tally of Covid-19 cases climbed to 2,60,31,991.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 71.04 crore on Thursday, as per provisional exchange data.
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Domestic equities look to be good as of now, said Modi, adding that benchmark indices witnessed sharp run-up this week despite selling pressure seen in the last two days as daily caseload in the second wave of Covid-19 continued to be below 3 lakh, which offered comfort and may result in the lifting of ongoing state-level lockdowns sooner.
Asian markets had a happy start following a rebound on Wall Street. The Hang Seng index edged 0.31 per cent higher, Japan’s Nikkei 225 rose 0.95 per cent in morning trade while the Topix index gained 0.62 per cent, and South Korea’s Kospi advanced 0.77 per cent.
In the US, stocks ended higher mainly on upbeat economic data, Modi said, adding that jobless benefit claims for last week fell to a pandemic low at 4.44 lakh.
The Dow Jones Industrial Average rose 188.11 points, or 0.55 per cent, to 34,084.15, the S&P 500 gained 43.44 points, or 1.06 per cent, to 4,159.12 and the Nasdaq Composite added 236.00 points, or 1.77 per cent, to 13,535.74.
The rupee opened higher at 72.97 against the US dollar in early trade tracking positive domestic equities and weakness of the American currency in the overseas market.
"The US dollar index has started weaker this morning in Asian trade and could be heading for a weekly loss, as traders' initial concerns at taper talk in Federal Reserve minutes receded and while pandemic recovery boosted other currencies," the Reliance Securities' note said
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Meanwhile, international oil benchmark Brent crude was trading 0.09 per cent higher at $65.16 per barrel.
