Sensex and Nifty climbed 2.3% each as investors cheered the Rs 20 lakh crore stimulus package announced by PM Modi yesterday.
Amid heavy sell off in global markets, Sensex and Nifty pared some gains later to close 2% higher. Sensex closed 637 points higher at 32,008 and Nifty ended the session at 9383, rising 187 points.
Earlier, domestic benchmarks started higher today as investors were optimistic over the Rs 20 lakh crore economic relief package announced yesterday, which accounts for around 10% of GDP.
Ajit Mishra, VP-Research, Religare Broking said, "The much-awaited stimulus package announced by the PM cheered the investors on Wednesday which triggered a decent up move in the benchmark as well. Mostly sectoral indices, barring defensive, participated in the move and posted handsome gains. The broader markets too showed resilience and gained nearly 2% each. Meanwhile, the earnings announcement from the index majors will continue to trigger stock-specific volatility.
Meanwhile, FM Sitharaman will announce the details of economic package in phases starting today at 4 PM
Globally markets were trading mixed today as investors weighed the potential for a second wave of virus infections after reopening economies. While European indices fell 2% in trade, Asian counterparts were mixed.
While Nikkei, Strait Times and Kospi fell on fears of second wave of virus, Taiwan, Kospi and SGX Nifty traded in green territory.
Overseas markets traded negative tracking fall in US stocks that closed majorly lower yesterday after a top government scientist warned against ending the coronavirus shutdowns and reopening the economy too quickly. US Futures (Dow Jones) traded at 23,569, down 5 points or 0.02%.
Vinod Nair, Head of Research at Geojit Financial Services said," Globally markets were weak fearing resurgence in virus infections and conflicting opinions regarding opening up of economies, while number of new infections continued to be a worry in India."
Stock specific action was seen on back of March quarter earnings. While Kotak Mahindra Bank and Maruti Suzuki announced their Q4 earnings during the trading session, Godrej Consumer Products, Mphasis, Schaeffler India, Siemens will announce their Q4 results later today.
Rupee, the local unit, closed stronger at 75.47 per dollar compared to its previous close of 75.50 per US dollar.
Ruchit Jain-Equity Technical Analyst, Angel Broking said, "Market gave up some of the gains in the first half and hour and then consolidated for rest of the session within the range of 9350-9430. Nifty ultimately ended the day with gains of over 2 percent at 9383."
Commenting over Nifty's near term outlook, he added,"For the coming session, 9240 will be the intraday support to watch out and any decline around it could be used as a buying opportunity. On the higher side, 9530 and 9600 will be seen as immediate resistances."