Nifty closes above 10,000 as lockdowns ease

·2-min read
Broker reacts while trading at his computer terminal at a stock brokerage firm in Mumbai

By Sethuraman N R

BENGALURU (Reuters) - India's Nifty index on Wednesday closed above the 10,000 mark for the first time since mid-March as the economy re-emerges from coronavirus lockdowns and risk appetite picks up in global markets.

The NSE Nifty 50 bluechip index and the S&P BSE Sensex rose nearly 2% earlier in the day, but gave up some gains in the last one hour as investors booked profits. The Nifty 50 ended up 0.83% at 10,061.55, while the Sensex closed 0.84% higher at 34,109.54.

The Nifty-50 bluechip index has risen 5% so far this week, following a similar rally last week. The indexes rose for a sixth straight session, their longest winning streak since October 2019.

"Market has fallen with higher than normal volumes in the last one hour after some selling from institutional participants," said Deepak Jasani, head of research at HDFC Securities in Mumbai.

"Our economic situation also doesn't warrant such a linear rise at this point of time and some reality is coming back among the participants," he added.

Meanwhile, coronavirus cases in India surged past 200,000 as of Wednesday, with growth rate of new infections showing no sign of slowing.

Among individual stocks, InterGlobe Aviation Ltd, which runs India's largest airline IndiGo, ended up 8.21%, a day after it rolled out plans to cut costs, phase out older planes and posted a 8.73 billion rupees loss in March quarter.

Mahindra and Mahindra was the top gainer in Nifty 50 index, ending up 4.8%.

Meanwhile, world shares hit three-month highs on Wednesday and the dollar fell for the sixth day running as easing lockdowns and hopes for more monetary stimulus gave investors confidence.

(Reporting by Nallur Sethuraman in Bengaluru; Editing by Arun Koyyur and Vinay Dwivedi)