Sensex rallies over 500 points in early trade; Reliance jumps 3 per cent
Equity benchmark Sensex surged over 500 points in the opening session on Monday as strong gains in index-heavyweights Reliance Industries, HDFC, Infosys and positive cues from global markets boosted market sentiment. After touching a high of 32,182.36, the 30-share index was trading 531.55 points or 1.68 per cent higher at 32,174.25. Similarly, NSE Nifty surged 148.65 points, or 1.61 per cent, to 9,400.15.
Reliance Industries was the top gainer in the Sensex pack, soaring over 3 per cent, followed by UltraTech Cement, Maruti, Bajaj Auto, IndusInd Bank and ITC.
In the midst of all the coronavirus-driven chaos, Reliance Industries seems to have created its own bull market territory through a V-Shaped recovery by concerted efforts to bring quality investors, reduce its net debt and streamline its balance sheet, said Jimeet Modi, Founder and CEO, Samco Securities.
"RIL having the highest weight in Nifty50 is also keeping markets on a better footing which in a way is helping to neutralise negative sentiments and is good for the current pandemic-stricken economy,” he added.
Meanwhile, Nestle India and ICICI Bank were trading in the red.
In the previous session, the BSE barometer settled 199.32 points or 0.63 per cent higher at 31,642.70, while the broader Nifty rose 52.45 points, or 0.57 per cent, to finish at 9,251.50.
Foreign portfolio investors purchased equities worth Rs 1,724.71 crore in the capital market on Friday, provisional exchange data showed.
Besides stock-specific action, foreign fund inflow and firm cues from global markets supported the positive sentiment in the domestic market, traders said.
Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading with gains.
International oil benchmark Brent crude futures were trading 1.16 per cent lower at USD 30.61 per barrel.
In India, the death toll due to COVID-19 rose to 2,206 and the number of cases climbed to 67,152, according to the health ministry.
Globally, the number of cases linked to the disease has crossed 41 lakh and the death toll has topped 2.82 lakh.