Markets open 1% higher as govt announces vaccine for all above 18

Benchmark indices Sensex and Nifty rose 1% each. Photo: Ramesh Pathania/MintPremium
Benchmark indices Sensex and Nifty rose 1% each. Photo: Ramesh Pathania/Mint
 2 min read . Updated: 20 Apr 2021, 09:37 AM IST Ravindra N. Sonavane

Mumbai: Indian equity markets opened 1% higher on Tuesday after the government announced vaccine for all above the age of 18 years from 1 May.

Benchmark indices Sensex and Nifty rose 1% each to 48440.65 points and 14495.85 points, respectively.

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The government on Monday threw open its vaccination drive to everyone over the age of 18 from 1 May under a market-based system that it claimed would encourage vaccine makers to boost production.

"The government's decision to open up vaccination for all above 18 from May 1 and announcement of measures to incentivise vaccine manufacturers are steps in the right direction. This is positive from the market perspective. The market is likely to ignore the stress in the healthcare system and the pains from the second wave", said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

As India struggles to control the rapid spread of covid 19 cases in the country, BofA Securities believes that vaccine shortages will drive more approvals. The brokerage firm forecasts 34%, 40% and 48% of India’s population getting vaccinated by 2021 in bear, middle and bull scenarios respectively.

Dr Reddy's Laboratories, in an interview with CNBC-TV18, said imported Sputnik V vaccine will be launched by 21 June.

The government also cleared ₹4,500 crore to ramp up vaccine production. Earlier Serum Institute had requested the government for ₹3,000 crore grant for ramping up capacity of the covid vaccine beyond 100 million doses a month.

Sensex on Monday plummeted 2% following a massive across-the-board selloff as mounting covid-19 cases spooked domestic investors who feared harsher restrictions and more economic pain.

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India continued to report record daily increase in covid cases, with the capital city of New Delhi announcing a complete curfew till next Monday. Maharashtra had already imposed stringent curbs, effective April 15.

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