Indian markets on Monday closed on a positive note for the fourth straight session, two days after the Centre announced the “Unlock 1” phase of the nationwide lockdown imposed to curtail the spread of the coronavirus, allowing malls, shopping complexes, hotels and restaurants to reopen from June 8.
The BSE Sensex surged 879 points or 2.71% to close at 33,304. The Nifty 50 finished 256 points or 2.57% at 9,826. The rally in the markets was led by financial and metal stocks.
The top gainers on the Sensex were Bajaj Finance, Titan Company, Tata Steel, Mahindra & Mahindra and State Bank of India. Meanwhile, stocks of Nestle, UltraTech Cement, Sun Pharma, Hero Motors declined.
On the Nifty, stocks of Bajaj Finance, Tata Company, Bajaj Finserv, Mahindra & Mahindra, Tata Steel and JSW Steel gained the most. The losers were Dr Reddy’s Laboratories, Cipla, Bharti Infratel, UltraTech Cement and Nestle.
Brokerage firm Motilal Oswal Financial Services said the “Unlock 1” guidelines are a good calibrated step towards the resumption of the economy, Moneycontrol reported. “Much also depends on state governments and local authorities as they have the keys for implementation,” the firm said. “While these relaxations would help improve the supply-side situation and potentially defray fixed costs, it would also drive consumption at the margin.” The company said it expects the central and state governments to keep easing lockdown norms in the near future.
Other Asian markets also rallied on Monday, as concerns about riots in the United States were offset by signs of easing tension between the US and China, and the gradual opening up of economies. The Hong Kong Hang Seng was trading over 3.3% higher, while the Shanghai SE Composite Index closed 2.2% up. Japan’s Nikkei 225 gained nearly 1%, the Australian index 1.13% and the Taiwan TSEC 50 Index 1.25%.
The Indian rupee appreciated by eight paise to close at 75.54 against the US dollar.