Sensex and Nifty closed higher today after government announced major relaxations in lockdown restrictions. Extending rise for the fourth straight session, Sensex closed 879 points higher at 33,303 and Nifty gained 245 points to 9,826.
At day's high, Sensex rose 1,120 points to 33,608 and Nifty climbed 331 points to 9,991. Market breadth was positive with 1,602 stocks trading higher against 305 lower on BSE. 114 stocks were unchanged. Sectorally, financials, banking and auto stocks gained momentum while pharma stocks came under selling pressure.
Experts said market sentiments turned positive after government announced its phase-wise plan to unlock the country, starting June 1.
S Ranganathan, Head of Research at LKP Securities said, "Rural Reforms coupled with mormal monsoon forecast fired up bulls amid lower interest rates and extreme pessimism as the lifting of lockdown in several states was reason enough for bulls to charge"
Investors worldwide were optimistic over slowing of new virus cases, with prospects of more government stimulus amid easing of lockdowns across the world.
Reduced US-China geopolitical tensions after US President Donald Trump stopped short of threatening tariffs on China and private survey data showing that China's manufacturing sector moved into expansion territory in May also boosted market sentiments.
Barring Germany's DAX that was closed on a holiday, European indices reversed the trend and gained on Monday, pushing Sensex, Nifty higher up to almost 4% by the afternoon session.
US stocks ended higher on Friday after Trump refrained from China sanctions. Asian stocks rose on Monday as progress on opening up economies helped offset jitters over riots in US cities and unease over Washington's power struggle with Beijing. European markets closed lower on Friday ahead of Trump proposed press meet on sanctions against China.
Meanwhile, companies set to announce their earnings are Orient Electric, Magna Electro Castings, Capital India Finance, Universal Cables, Welspun Enterprises, Vindhya Telelinks, V-Guard Industries, Birla Cable, Srikalahasthi Pipes among others will announce their Q4 results today.
As per technical indicators, with today's strong push, Nifty is expected to aim for 10,000 mark. Ajit Mishra, VP - Research, Religare Broking said,"The recent surge indicates that markets are focusing more on the optimistic side and anticipating a favourable scenario."
Deepak Jasani, Head Retail Research, HDFC Securities said, "Technically, Nifty has filled the downgap of 9731 made on May 4 and in the process has formed a bullish island reversal. 9889-9932 could be the resistance for the Nifty while 9584-9598 could be the support in the near term".
On the currency front, Indian rupee, the local currency ended mildly stronger at 75.54 per dollar as compared to its last closing of 75.61 per dollar.