Sensex gains 2.3% on stimulus package hopes

A view of the BSE building in Mumbai. File   | Photo Credit: Paul Noronha

Expectations of a stimulus package from the government ahead of the festive season propped up market sentiment as benchmark indices gained more than 2% on Friday after plunging almost 3% a day earlier.

The S&P BSE Sensex gained 835 points, or 2.28%, to 37,388.66. Top gainers included Bajaj Finserv, HCL Technology, Bharti Airtel, IndusInd Bank and L&T. All the stocks in the 30-share Sensex reported gains.

The NSE Nifty 50 also rose 245 points, or 2.26%, to 11,050.

“The equity markets recovered quite a bit of lost ground from the previous day,” Dr. Joseph Thomas, head of research, Emkay Wealth Management, said. “Expectations of a further fiscal package from the government ahead of the festival season is a factor that may endow the markets with some strength.”

Stating that rising volatility was a sign of caution, Nirali Shah, senior research analyst, Samco Securities, said, “The market is now trying to impersonate the grim ground-level realities by reacting sharply to any negative global clues.”

“Markets are expected to remain under pressure in anticipation of immense liquidity being sucked out as long as the IPO party is still on... Investors should be wary of subscribing to IPOs and should look at some only from a listing gains perspective,” Ms. Shah said.

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Printable version | May 17, 2021 11:00:13 PM |

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