Markets open 0.5% higher tracking global equities
Premium- Continued fall in covid-19 cases in India and better-than- expected March quarter earnings also improved sentiment among investors
Mumbai: Indian equity markets on Tuesday opened 0.5% higher tracking gains in global equities. Continued fall in covid-19 cases in India and better-than- expected March quarter earnings also improved sentiment among investors.
At 9.30am, the benchmark Sensex was 0.48% higher to 50,858 points, while Nifty gained 0.46% to 15,268 points.
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"Domestic equities look to be good for the day. Notably, continued decline in daily caseload in second wave (fell below 2 lakh yesterday after 40 days) and improvement in recovery rates have certainly bolstered investors’ confidence as this can reinvigorate sluggish economy faster. It also indicates that assumption of peaking-out by second wave by the end of May or mid of June holds true and adverse impact of second wave should not be felt beyond 1QFY22," said Binod Modi, Head Strategy at Reliance Securities.
Investors will continue to focus on trajectory of daily caseload and vaccination ramp up in the country in the near term.
Analysts say possible withdrawal of restrictions in a phased manner by states from next week should boost confidence among investors further.
Asian markets were trading higher, and US markets ended firm overnight amid gains in technology stocks.
"The overall structure of the market remains positive from the long-term perspective. However, the risk of inflation and development on the Covid-19 front domestically would decide the market direction going ahead. Investors this week would watch out for US GDP data on global front while monthly F&O expiry would keep markets volatile on domestic front," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services..
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