Mumbai: Benchmark equity indices rallied for the fourth session in a row on Thursday, buoyed by gains in Asian peers after positive partial results from a trial of Gilead’s antiviral remdesivir, which showed the drug could help speed recovery from COVID-19.

For the month, Sensex and Nifty rose 14.28 per cent and 14.59 per cent, respectively, posting their best show since September 2009, in the backdrop of very steep losses in March. The sentiment was boosted by stimulus packages by central banks and governments across the globe. These indices had eroded 20.69 per cent and 21.41 per cent, respectively in March.

The month of April also saw investor wealth swelling by Rs 15.9 lakh crore on the BSE. Meanwhile, India VIX posted its worst month in history as it dropped 47.23 per cent in April.

Key facts

The 30-share Sensex closed 3.05 per cent or 997 points higher at 33,718, while the 50-share Nifty rose 3.21 per cent or 307 points to settle at 9,860.

MSCI’s broadest index of Asia-Pacific shares, excluding Japan, rose 1.4 per cent, while Europe’s STOXX 600 fell 0.2 per cent.

The Federal Reserve kept interest rates near zero and reiterated to use its "full range of tools" to shore up the US economy. Later in the day, the ECB is set to meet amid devastating effects of the pandemic in European countries.

There was heightened activity ahead of the monthly futures and options expiry which kept the stock market buzzing.

Key market statistics

Market breadth was positive with gainers outnumbering losers in the ratio of 1.3:1 on the BSE.

The broader market, however, continued to underperform. BSE Midcap and Smallcap indices rose 1.46 per cent and 1.15 per cent, respectively.

BSE Metal index was the top sectoral gainer as it jumped 8.27 per cent. Miner Vedanta and aluminum producer Hindalco rallied 13.20 per cent and 11.99 per cent, respectively.

BSE Auto index followed suit with a 5.96 per cent jump. Carmaker Tata Motors surged 19.13 per cent, while two-wheeler maker Hero MotoCorp raced 9.94 per cent.

Only two sectoral indices -- BSE Healthcare and BSE FMCG -- closed lower, falling 0.58 per cent and 0.12 per cent, respectively.

Oil & Natural Gas Corp was the top gainer with a 13.40 per cent jump.

What are the experts saying?

“Successful trials of a Covid-19 vaccine helped the global markets gain some positivity. Domestically, indications of easing of lockdown measures and stimulus hopes helped drive the markets. Being F&O expiry day today, short covering and roll-overs in the market also contributed to the gains. Next week outlook will be driven by the way forward for resumption of business after lockdown, announcement of any stimulus package and stock-specific earnings results," said Vinod Nair, Head of Research at Geojit Financial Services.

“After the strong rally from the lows of March 2020, risk of a correction has increased in the near term, though the probability of the market going deep below the 30000 level looks remote. Investors should keep this in mind and trade accordingly. Yet, investment from a medium to long term perspective looks workable as we expect corporate profits to show good growth in FY22," said Sanjeev Zarbade, VP PCG Research, Kotak Securities

What to watch out for?

Investors await the announcement of the second round of stimulus measures to boost the ailing economy, in light of the lockdown.

The roadmap on lifting or extension of the lockdown is keenly awaited.

Sensex surges 997 points\, posts best monthly show since 2009