The Sensex rose 1.15 per cent, or 506 points, to end at 44,655, while the Nifty added 1.1 per cent, or 140 points to close at 13,109
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Markets | Sensex | Nifty
The Indian equities markets rose on Tuesday following their best monthly gain since April, with sentiment lifted by data showing a smaller-than-expected contraction in Asia’s third-largest economy and broader optimism stemming from hopes for a Covid-19 vaccine. Most global markets, too, rose after positive factory activity data raised hopes of a strong revival in the global economy.
The Sensex and the Nifty logged fresh all-time highs on a closing basis. The Sensex rose 1.15 per cent, or 506 points, to end at 44,655, while the Nifty added 1.1 per cent, or 140 points to close at 13,109.
The benchmark indices had closed out November with gains of more than 11 per cent each, driven by record inflows from foreign portfolio investors (FPIs) and news on progress on Covid-19 vaccines.
Strong buying by FPIs showed no signs of abating. On Tuesday, they pumped in another Rs 3,242 crore. “India’s GDP data has positively surprised markets; there are signs of recovery in key sectors,” said Gaurav Garg, head of research at CapitalVia Global Research.
The government data released after market hours on Friday showed India’s economy contracted by 7.5 per cent in the September quarter, versus an 8.8 per cent contraction expected in a Reuters poll, amid signs of a pick-up in manufacturing.
“Most of the impact of vaccine-related news has been incorporated by the markets, which we saw in the rally in November,” Garg said, adding the markets could consolidate in coming days.
Moderna said on Monday it had applied for US emergency authorisation for its Covid-19 vaccine, boosting Asian and European shares on Tuesday despite an overnight dip on Wall Street.
Sun Pharma was the biggest gainer among Sensex components with its stock jumping 5.5 per cent. IndusInd Bank and ONGC gained about 4 per cent each.
Heavyweight IT firm Infosys was the biggest boost to the indices, rising over 3 per cent. Twenty Sensex stocks advanced, while 10 declined.
“The Asia-Pacific markets reacted to the release of a private survey of China’s manufacturing activity. The Caixin/Markit manufacturing Purchasing Managers’ Index for November came in at 54.9 — its highest reading in a decade. India’s GST collections for November remained above the Rs 1-trillion-mark for the second consecutive month as consumption picked up amid the festive season,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
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First Published: Tue, December 01 2020. 23:20 IST
read the full story about Dec begins on a strong note for Sensex, Nifty, end on all-time highs
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