The central bank’s update on economic activity at a time when most states are in some form of lockdown due to COVID resurgence boosted investors’ confidence that the economy will be able to come out of the second wave in much better shape than the first one in 2020.
For the session, the Nifty50 index ended 1.2 per cent, or 168 points, higher at 14,653.1, while the BSE-Sensex closed at 48,944.1, up 1.2 per cent or 557.6 points.
The gains were prominent in the broader market as the Nifty Midcap 100 and Nifty Smallcap 100 index ended 1.6 per cent and 1.7 per cent higher, respectively.
Here are the major movers in today’s session:
Amines makers surge on demand boost
Shares of amine makers such as Alkyl Amines and Balaji Amines soared on perception that rapid scale-up in vaccine manufacturing in the country will boost demand for amine, which are organic chemical compounds used as a raw material in the making of vaccines. Shares of Alkyl Amines and Balaji Amines ended 20 per cent and 19.4 per cent higher, respectively.
Metal stocks continue rising
Shares of metal producers extended their gains on the back of a rally in global base metal prices overnight on improving demand outlook and deteriorating supply situation. Global copper prices hit a 10-year high and several global steel producers are on the move to raise their prices, which is seen as benefitting domestic producers. Nifty Metal index rose 2.7 per cent.
Maruti Suzuki falls on weak earnings
Shares of Maruti Suzuki India ended 1 per cent lower after the company reported lower-than-expected earnings for the quarter ended March. The company’s topline and bottomline missed analysts’ estimate. The company also highlighted the rising impact of costlier raw materials on margins going ahead.
Over 100 stocks hit 52-week highs
Shares of 126 companies hit their 52-week highs during the session including Tata Steel, CDSL, Divi’s Labs, and Supreme Petro. This is the second sessions in a row that over 100 stocks hit their 52-week high reflecting the emerging strength in the broader market after a brief period of weakness.
What gave buy signal?
As many as 149 stocks listed on the National Stock Exchange gave buy signals based on MACD indicators including Vodafone Idea, State Bank of India, Tata Motors, Tata Steel, Vedanta and NMDC.
What’s ahead for the market?
Traders continued to buy out-of-money call options of Nifty50 suggesting that they expect today’s gains to sustain in the coming session. In the futures segment, traders added long positions in the May futures contract of the index as Open Interest rose 62 per cent.
“We reiterate our cautious stance in the near term due to rising COVID-19 cases,” said Ajit Mishra, vice president of research at Religare Broking.
