Sensex ends 114 points higher; IRCTC, IndiGo, SpiceJet rise on plan to resume operations
Rupa Burman Roy May 21, 2020
Sensex and Nifty erased early gains but managed to close higher on Thursday during derivatives expiry amid mixed trend in global equities.
Extending gains for the third consecutive session, Sensex ended 114 points higher at 30,932, while Nifty gained 39 points to 9,106.
Traders said investors were buoyant over ease in lockdown restrictions amid plans to restart domestic flights and railways.
Aviation stocks such as SpiceJet and InterGlobe Aviation rose up to 10% after Civil Aviation Minister Hardeep Singh Puri said that domestic flights will resume from May 25 "in a calibrated manner. IRCTC stock hit 5% upper circuit on the announcement that 200 trains will restart functioning from June 1.
Market indices erased early gains and turned range-bound, amid volatility in global markets. Overseas, the market turned volatile by the afternoon session as investors fretted over concerns of the long-term impact of COVID-19 and worsening China-US relations kept investors on edge.
European indices reversed the trend and turned red today, with more concerns of the second wave of coronavirus infections rising in many countries. While FTSE declined 0.80%, CAC and DAX fell 1% each. Elsewhere in Asia, most indices turned red, barring Kospi and Taiwan.
Earlier, Asian markets started the day higher, tracking a rally in US stocks that ended higher yesterday as gains in technology stocks, optimism about economic recovery and expectations of further stimulus measures by the Federal Reserve kept sentiments buoyed. Traders said signs of additional economic stimulus raised hopes of a swift recovery from a coronavirus-driven slump.
However, futures in the US and Europe retreated, halting this week's rally for global equities. US Futures (Dow Jones) traded at 24363, down 156 points or 0.64%.
Vinod Nair from Geojit Financial Services said, "Markets are expected to trade in a range, until further directions from the government, while stock specific moves, based on the ongoing earnings season and sectoral impact of the lockdown measures, will continue."
As per experts, investors kept trades cautious amid concerns over the rising number of COVID-19 cases in the country and the economic fallout of the nationwide lockdown.
Tracking the global rally, Sensex and Nifty opened higher on Thursday. While Sensex opened 98 points higher at 30,917, Nifty started the day 42 points higher at 9,108.
Meanwhile, Birla Corporation, Bajaj Holdings, Hawkin Cookers, Aptech, Colgate-Palmolive, Tata Metaliks, VST Industries, Quick Heal and Jubilant Industries will report their quarterly results today.
On the commodity front, oil prices continued to gain on hopes of rising demand and fall in US inventories but upside was capped amid worries of a second wave of infections hitting many countries. Brent crude rose 0.77% higher to trade at $36.52 per barrel.
In the currency market, Rupee closed 19 paise lower at 75.60 per dollar against opening of 75.61 per US dollar.
Expressing views over Nifty's near term outlook, Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel Broking said,"Going ahead, we expect the Nifty to continue this upward trajectory towards 9150-9220 levels. On the flipside, 9000-8932 would now provide decent support for the market."