Equity benchmarks rallied to fresh lifetime highs on Tuesday, propelled by banking and finance stocks, after positive results from Pfizer’s Covid-19 vaccine trials turbocharged global market sentiment.
Climbing for the seventh session on the trot, the BSE Sensex soared 680.22 points or 1.60 per cent to close above the 43,000-mark for the first time at 43,277.65.
Intra-day, the 30-share benchmark touched its lifetime peak of 43,316.44.
The broader NSE Nifty too ended at its all-time high of 12,631.10, up 170.05 points or 1.36 per cent. It hit an intra-day record of 12,643.90 during the session.
Both the benchmarks scaled record highs for the second straight session.
Bajaj Finance was the top gainer in the Sensex pack, spurting 8.84 per cent, followed by IndusInd Bank, L&T, Bajaj Finserv, HDFC, SBI, ICICI Bank, HDFC Bank, ONGC and Axis Bank.
On the other hand, Tech Mahindra, HCL Tech, Nestle India, Infosys, Sun Pharma and TCS were among the main laggards, tumbling up to 5.73 per cent.
Global equities witnessed a relief-rally after Pfizer and BioNTech on Monday said their vaccine candidate was found to be more than 90 per cent effective in preventing COVID-19.
“Announcements by BioNTech and Pfizer about successful phase 3 trial of COVID-19 vaccine instilled confidence among investors and possibility of sustained economic recovery led sharp buying in beaten down stocks,” said Arjun Yash Mahajan, Head Institutional Business at Reliance Securities.
Favourable global markets and NDA’s surprising lead in Bihar assembly elections also supported the rally, he added.
However, champions that emerged during pandemic like IT and pharma stocks witnessed sharp profit booking, he noted.
The ruling NDA in Bihar was ahead of its rivals in more than half of the state’s 243 assembly seats, with the BJP appearing set to outperform its senior alliance partner JD(U) headed by Chief Minister Nitish Kumar, according to trends available till late afternoon.
Elsewhere in Asia, bourses in Hong Kong, Seoul and Tokyo ended with gains, while Shanghai settled lower.
Stock exchanges in Europe were mostly trading on a positive note.
Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 4,548.39 crore on Monday, according to provisional exchange data.
Meanwhile, international oil benchmark Brent crude was trading 1.42 per cent higher at $43 per barrel.
The rupee depreciated by 3 paise to close at 74.18 against the US dollar as higher crude oil prices and stronger dollar against key global currencies weighed on sentiment. - PTI
Sectoral index:
Nifty call:
Strategy: Go long on dips with a stop-loss at 12,520.
Supports: 12,500 and 12,480
Resistances: 12,630 and 12,650
Shares update:
Shares of Pfizer Limited zoomed nearly 20 per cent on Tuesday after Pfizer Inc and BioNTech SE said their vaccine candidate was found to be more than 90 per cent effective in preventing COVID-19.
The stock jumped 16.29 per cent to Rs 5,875 -- its record high -- on the BSE.
At the NSE, it gained 19.83 per cent to its lifetime high of Rs 5,900.
“The first set of results from our Phase 3 Covid-19 vaccine trial provides the initial evidence of our vaccine’s ability to prevent Covid-19.
“We are reaching this critical milestone in our vaccine development program at a time when the world needs it most with infection rates setting new records, hospitals nearing over-capacity and economies struggling to reopen,” Pfizer Chairman and CEO Albert Bourla said on Monday. (PTI)
Update: 11.14 am
The benchmark indexes hit record highs on Tuesday as progress in the development of a coronavirus vaccine raised hopes of a global economic recovery, and helped airline and hotels stocks that have been hammered by the pandemic.
The NSE Nifty 50 index rose 0.7 per cent to 12,553.7 and the S&P BSE Sensex gained 0.85 per cent to 42,60.09, led by banking and financial stocks.
MSCI's broadest index of Asia-Pacific shares outside Japan was 0.12% higher on news that Pfizer Inc's experimental Covid-19 vaccine showed over 90 per cent effectiveness based on initial trial results.
The US drugmaker's Indian arm Pfizer Ltd gained as much as 19.8 per cent during the session.
“The vaccine news is a big relief for markets and investors are hoping that the economic recovery will take place sooner,” said Samrat Dasgupta, chief executive officer at Esquire Capital Investment Advisors.
“However, the next six months will be crucial as we see more developments on the vaccine.”
Stocks of IndiGo owner InterGlobe Aviation rose 5.3 per cent, while hotel operators EIH Ltd and Lemon Tree jumped more than 5 per cent each.
Investors hoped that the vaccine would help the travel and hospitality sectors return to normalcy after facing restrictions because of the coronavirus lockdowns, Esquire Capital's Dasgupta said.
Among other sectors, the Nifty Bank index and the financials index climbed 2.4 per cent each, rising for a seventh consecutive session.
Gainers, losers
Bajaj Finance gained 4.5 per cent to top the gainers among the Nifty. Lenders ICICI Bank and IndusInd Bank added 3.8 and 4.6 per cent, respectively.
Natural gas explorer GAIL (India) was up 2.3 per cent ahead of its earnings scheduled for later in the day.
The Nifty IT index was the top drag among sectors and fell 2.8 per cent. Tech Mahindra slid about 4%, while Infosys and HCL Technologies slipped around 3 per cent each. (Reuters)
Rupee call:
The rupee (INR) closed last session with a marginal gain against the dollar (USD). It closed at 74.14 after marking an intraday high of 73.82. That is, the local currency has essentially closed below the support of 74.
Today, INR has opened higher at 74.06 compared to yesterday’s close of 74.14. While the local currency faces a resistance at 74, a breakout of this level can lift the rupee to the subsequent resistance at 73.85. Above that level, it can potential appreciate to 73.7. But if the rupee depreciates on the back of the resistance of 74, it is likely to slip to 74.2. Below that level, it can find support at 74.3.
Opening bell
Equity benchmark Sensex opened over 350 points higher to hit its record intra-day level on Tuesday, tracking a global market rally driven by Pfizer’s progress in the development of COVID-19 vaccine amid persistent foreign fund inflow.
After touching its lifetime peak of 42,959.25 in the opening session, the 30-share BSE index was trading 216.15 points or 0.51 per cent higher at 42,813.58.
Similarly, the broader NSE Nifty too claimed a fresh high of 12,557.05. Later, it was trading with 51.65 points or 0.41 per cent gain at 12,512.70.
ICICI Bank was the top gainer, surging around 3 per cent, followed by ONGC, HDFC, L&T, SBI, HDFC Bank, IndusInd Bank and Bajaj Finance.
On the other hand, Tech Mahindra, Infosys, HCL Tech, TCS, Nestle India and Maruti were in the red.
In the previous session, Sensex ended 704.37 points or 1.68 per cent higher at 42,597.43 -- its record closing high. The Nifty too closed at a lifetime high of 12,461.05, up 197.50 points or 1.61 per cent.
Trade set up in domestic equities continues to look good with Asian markets are trading in green with handsome gains, said Arjun Yash Mahajan Head Institutional Business at Reliance Securities.
“Clarity over COVID-19 vaccine is likely to ease the concerns of the possible second wave of coronavirus in India, which essentially means that revival of economic activities should persist. The domestic market should continue to see traction in the equities market in the near term,” he said.
Amid positive signals, investors were also cautious ahead of the Bihar Assembly election results, traders said.
Pfizer and BioNTech on Monday said their vaccine candidate was found to be more than 90 per cent effective in preventing COVID-19.
US equities ended mostly higher as positive news about the COVID-19 vaccine bolstered investor confidence further.
Elsewhere in Asia, bourses in Shanghai, Hong Kong and Tokyo were trading up to 0.74 per cent higher in mid-session deals, while Seoul was flat.
Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 4,548.39 crore on Monday, according to provisional exchange data.
Meanwhile, international oil benchmark Brent crude was trading 1.23 per cent lower at USD 41.88 per barrel.
(PTI)