Sensex zooms 1,862 pts; Nifty reclaims 8,300 level

Mumbai: People watch the Sensex on a screen outside Bombay Stock Exchange (BSE) in Mumbai, Thursday, March 19, 2020. Equity benchmark Sensex ended 581 points lower in a highly volatile session on Thursday amid heightened fears of a global recession triggered by the coronavirus pandemic. Photo: PTI

Mumbai: Benchmark Sensex soared 1,862 points on Wednesday led by massive gains mainly in heavyweights RIL, HDFC twins and ICICI Bank as investors shrugged off concerns over the 21-day nationwide lockdown in anticipation of a stimulus package by the government to cushion the economic blow of Covid-19.

Domestic market was also enthused by recovery in global stocks after the US Senate and White House reached agreement on a USD 2 trillion stimulus package for the US economy.

After opening on a choppy note, the BSE barometer ended 1,861.75 points or 6.98 per cent higher at 28,535.78.

Similarly, the NSE Nifty settled 516.80 points, or 6.62 per cent, up at 8,317.85.

Reliance Industries was the top gainer in the Sensex pack, rallying up to 15 per cent, followed by Kotak Bank, Maruti, HDFC twins, Titan, L&T and Axis Bank.

On the other hand, IndusInd Bank, ONGC, ITC and Bajaj Auto closed with losses.

Receding uncertainty in domestic markets following defined lockdown announcement and assurance of domestic stimulus by the government boosted investor sentiment, said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi.

“The rally was supported by strength across the markets including large frontline and mid-small cap stocks ahead of expiry tomorrow (Thursday) which also played its part in terms of short-covering which added further fuel to the rally,” he added.

Further, global markets rallied after the White House and Senate reached a deal on a gigantic coronavirus stimulus bill, he pointed out.

Earlier in the day, the US Senate and White House reached agreement on a $2 trillion stimulus package for the US economy.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul rallied up to 8 per cent. Benchmarks in Europe were also trading up to 4 per cent higher.

International oil benchmark, Brent crude futures rose 0.07 per cent to $27.17 per barrel.

According to the latest Union Health ministry update the number of coronavirus cases in India rose to 562, while the death toll due to this viral infection was revised down to nine from 10 after the second death in Delhi turned out to be negative.

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