Markets open 0.9% higher on the back of gains in global equity markets
Premium- Gains in the domestic markets were also seen after better-than-expected March quarter earnings
MUMBAI : Indian markets on Friday opened nearly 0.9% higher, tracking gains in global equity markets. Gains in the domestic markets were also seeafter better-than-expected March quarter earnings.
At 9.40 am, the benchmark Sensex rose 0.88% to 49,382.19 points, while Nifty gained 0.86% to 14,862 points.
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Asian stocks were trading higher after a rally in US markets on positive economic data. China and Hong Kong indices opened higher. Japan, South Korea and Australia also advanced.
India recorded fresh covid-19 cases at over 400,000 in the last 24 hours, which is the highest so far and continued rise in death count remain a matter of concern for the markets. While several states had started showing signs of reversal in daily caseload, sharp rise in daily cases again raises concerns, analysts say.
"Domestic equities look to be modestly good now mainly on favourable global cues. However, the government said that the worst hit regions such as Maharashtra, Delhi and Punjab may see ease in cases in the next 5-10 days, while concerns over other states and rural parts of the country continue to persist," said Binod Modi, head, strategy, at Reliance Securities.
"Notably, the markets are still factoring in reversal in daily caseload by the end of May or the middle of June and any sign of absence of reversal in caseload within this period will dent investors’ sentiment," Modi added.
The interplay of resurgence in covid-19 cases and the pace of vaccination would decide the trajectory of economic recovery going forward, analysts say.
"Going forward, markets are likely to remain range-bound along with bouts of ups and downs. Resurgence of the second covid wave has dented sentiments and weakened FY22E earnings visibility. While the markets are currently looking beyond the short-term impact, if the pandemic doesn’t subside soon, it opens up downside risks," said Siddhartha Khemka, head-retail research, Motilal Oswal Financial Services Ltd.
"4QFY21 earning season has been the silver lining so far as it has progressed well so far, but earnings downgrades are now rising, given the widespread restrictions in various states," Khemka added.
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