Indian equity benchmarks registered their biggest single-day gain in absolute terms on Tuesday as global markets rose on hopes that the COVID-19 pandemic may be hitting its peak and the rising curve would flatten soon.
The 30-share Sensex gained almost 9%, or 2,476.26 points, to close above the psychological 30,000-mark at 30,067.21.
The Sensex pack saw stocks such as IndusInd Bank, Axis Bank, ICICI Bank, M&M, Hindustan Unilever, Maruti Suzuki India, Nestle, and Reliance Industries, all gaining over 10% on Tuesday.
The broader Nifty gained 708.40 points, or 8.76%, to close at 8,792.20. The India VIX, meanwhile, dipped almost 6% on Tuesday — the first trading session after an extended holiday.
“The rally in the market was driven by positive news with regard to data from New York and Spain on the rate of corona infections,” said Abhimanyu Sofat, head, research, IIFL Securities.
“The flattening of the curve would help a risk-on trade in the market. However, for Nifty to go above the 9,000 levels, one would need some additional positive news on the domestic front with regard to corona,” added Mr. Sofat.
As per reports, the state of New Jersey, which has the second-highest number of COVID-19 cases and deaths, saw a 12% increase in the number of cases on Monday — a sharp fall compared with the 24% rise registered on March 30.
In India, however, the total number of cases is nearing the 4,500-mark with a few State governments suggesting extending the 21-day lockdown.
On the BSE, more than 1,800 stocks rose compared with the less than 550 that declined. Further, more than 400 stocks hit their upper circuit on Tuesday.
Foreign portfolio investors (FPIs) were net buyers at almost ₹742 crore while their domestic counterparts bought shares worth ₹422 crore.
Among leading Asian indices, both Hang Seng and Nikkei gained over 2% each while the benchmarks of South Korea, Taiwan, China, Malaysia, Singapore and Philippines all ended with significant gains on Tuesday.
