Sensex rise today: Sensex climbs 500 points on firm global cues, Nifty tops 15,300; L&T rises 2%
The BSE Sensex climbed over 500 points in early trade and was later quoting at 51,748.75, up 469.24 points or 0.92 per cent. 15,320.65. The NSE Nifty was quoting 145.85 0.96 per cent higher at 15,309.30.
Among Sensex stocks, Larsen & Toubro rose 2.60 per cent to Rs 1,563.80. ONGC, NTPC, HDFC Bank and ICICI Bank rose 1.5-2 per cent. SBI, Axis Bank and Bajaj Finance gained over 1 per cent each.
Bajaj Auto, Hindustan Unilever, Sun Pharma and Nestle India were among index stocks falling up to 1.5 per cent.
“The ‘risk on’ in global equity markets got another push with the passage of the $1.9 trillion fiscal stimulus. Nifty is again likely to reach record highs. IT has been leading this leg of the rally. Now, financials may catch up. Buy on dips’ has been a successful strategy so far. Now, since markets have run too much, at around 15,400 Nifty, it is better to take a pause rather than buy. Partial profit-booking also may be considered,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Earlier in the day, Asian stocks rose amid a further retreat in bond yields eased concerns about rampant inflation, restoring appetite for battered tech stocks. Japan’s Nikkei 225 added 0.61 per cent, Hong Kong’s Hang Seng index rose 0.15 per cent and Korea’s Kospi added 1.40 per cent.
In overnight trade, the S&P500 index and the Dow Jones Industrial Average index closed at all-time highs as worries about rising inflation subsided and weekly jobless claims saw a bigger-than-expected fall. The Dow Jones Industrial Average rose 188.57 points, or 0.58 per cent, to 32,485.59, the S&P500 index gained 40.53 points, or 1.04 per cent, to 3,939.34 and the Nasdaq Composite added 329.84 points, or 2.52 per cent, to 13,398.67.
On Thursday, the European Central Bank said it would significantly ramp up the pace of its pandemic emergency bond buys, in a bid to soothe market jitters about a rise in government borrowing costs. The move is aimed at preventing an “undesirable” early end to cheap money when the eurozone economy still needs ample support to recover from the pandemic, ECB chief Christine Lagarde said.
Brent crude prices eased but hovered near $70 a barrel as production cuts by major oil producers constrained supply. Brent crude futures for May slipped 17 cents, or 0.2 per cent, to $69.46 a barrel.
Meanwhile, Friday would see the kick start of Anupam Rasayan’s Rs 760 crore IPO. The issue by the specialty chemicals company comprises an entirely fresh issue of shares, in which shares will be offered in the price bank of Rs 553-555. At the upper limit of the price band, the scrip is asking a PE of 95.2 times on a trailing 12-month basis, on a restated EPS of Rs 5.80. This is significantly higher than the peer average of 33 times. Some analysts said the asking valuations exceed the company’s growth prospects.
