Indian equity benchmarks gained strong ground on Monday, with the Sensex surging over 1,000 points in intraday trading as investor sentiment received a boost with the government easing lockdown restrictions. The positive trend in Asian markets acted as a catalyst.
The 30-share Sensex gained 879.42 points, or 2.71%, to close at 33,303.52. Earlier in the day, it gained 1,250 points to touch a high of 33,673.83.
The broader Nifty settled the day at 9,826.15, up 245.85 points, or 2.57%.
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Market participants attributed the rally to a combination of domestic and global factors, even as the number of COVID-19 cases in the country continues to rise significantly on a daily basis.
According to Aamar Deo Singh, head, Advisory, Angel Broking, the markets surged on the back of a positive trend in the Asian markets and the Indian government relaxing curbs on most economic activities even as the lockdown in containment zones has been extended till June 30. “The rally was broad based, with advances outnumbering declines by 15:1 in CNX Nifty 500. Overall, sustaining above the current levels is very crucial for a move towards the 10,000 mark in Nifty, in the near future,” added Mr. Singh.
On the BSE, close to 1,900 stocks ended the day in the green as against about 600 stocks that declined.
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Among the Sensex pack, stocks such as Reliance Industries, HDFC Bank, HDFC, TCS, Bajaj Finance, Hindustan Unilever, State Bank of India and ICICI Bank contributed the most to the day’s gains.
As many as 25 stocks in the Sensex pack gained on Monday, while stocks such as L&T, Hero Motocorp and Nestle India, among others, lost ground.
FPIs turn big buyers
Incidentally, foreign investors also bought shares in huge quantities on Monday, with the net buying pegged at ₹1,575 crore.
In May, foreign portfolio investors were net buyers at ₹14,569 crore after two consecutive months of selling.