Sensex, Nifty gain 5% after 3-day trading holiday; check what’s driving this rally on D-Street today

After a three-day trading holiday, headline indices Sensex and Nifty started the week with a uptick of nearly 5 per cent on Tuesday mirroring the gains in the global markets. S&P BSE Sensex was trading 1,325 points or 4.80 per cent to 28,961, while the broader Nifty 50 index was ruling at 8,446, up 363 points or 4.5 per cent higher. “Traders should continue with the “sell on rise” approach and prefer trading through options strategies.  At the same time, investors should keep their shopping list handy and utilise further correction to accumulate fundamentally sound counters in a staggered manner. We believe the market trend will continue to remain challenging until the fresh cases start to decline,” Ajit Mishra, VP – Research, Religare Broking Ltd, said.

IndusInd Bank gains 18%: As many as 29 stocks out of 30 Sensex stocks were trading green today, with IndusInd Bank as the top gainer, up 18 per cent to Rs 370, followed by M&M, Axis Bank and Sun Pharma. While Bajaj Finance was the only loser on the pack, down 2.64 per cent.

All sectoral indices trade higher: All the Nifty sectoral indices were trading higher today with Nifty Private Bank index leading the gains, up 6.68 per cent driven by IndusInd Bank, Axis Bank and ICICI Bank. Similarly, Nifty IT index was up 5.26 per cent with HCL Tech, Infosys and TCS as the top index gainers. 

Global markets: Asian stocks climbed tracking gains on Wall Street on signs of a slowdown in coronavirus-related deaths. Nikkei futures opened lower but were 2.3% above the cash close. The yen eased 0.01% as traders awaited more details on the government’s stimulus package. US stocks rocketed higher on Monday, with each of the major indexes rallying at least 7%, after a fall in the daily death toll in New York, fueled optimism a leveling off of the pandemic was on the horizon, Reuters reported. The Dow Jones Industrial Average rose 1,627.46 points, or 7.73%, to 22,679.99, the S&P 500 gained 175.03 points, or 7.03%, to 2,663.68 and the Nasdaq Composite added 540.16 points, or 7.33%, to 7,913.24.

Gold prices touch record high- Gold June futures were up 3.19 per cent or Rs 1,393 to Rs 45,115 per 10 grams at around 9.40 am. It scaled an all-time high of Rs 45,724 at the open. Silver May futures were up 5.21 per cent or Rs 2,146 to Rs 43,369 per kg on MCX.