Sensex soars 976 pts as stellar earnings, declining COVID cases spur bulls; investors richer by Rs 2.41 lakh cr

·3-min read

Mumbai, May 21 (PTI) Market benchmarks made an emphatic comeback on Friday after two days of losses as robust results by SBI gave fresh impetus to banking and finance stocks, while a declining trend in COVID-19 cases also assuaged investor concerns.

A strong recovery in the rupee and positive global cues added to the buying momentum, traders said.

Building on a strong start, the 30-share BSE Sensex advanced 975.62 points or 1.97 per cent to finish at 50,540.48. This was the benchmark's biggest single-day jump since March 30 this year.

Similarly, the broader NSE Nifty soared 269.25 points or 1.81 per cent to close at 15,175.30.

HDFC Bank was the top gainer in the Sensex pack, rallying 4.48 per cent, followed by SBI which zoomed 4.30 per cent after posting solid quarterly earnings.

The country's largest lender reported an 80 per cent surge in standalone net profit at Rs 6.450.75 crore for the fourth quarter ended March 2021, aided by a decline in bad loans.

IndusInd Bank, ICICI Bank, Axis Bank, HDFC and Kotak Bank were among the other prominent gainers.

Only two Sensex stocks closed lower -- Dr Reddy’s and PowerGrid, slipping up to 0.37 per cent.

Investor wealth surged by Rs 2.41 lakh crore, with the market capitalisation of BSE-listed companies reaching Rs 218.05 lakh crore.

During the week, the Sensex soared 1,807.93 points or 3.70 per cent, and the Nifty rallied 497.50 points or 3.38 per cent.

'Banks led the charge today buoyed by SBI earnings as bulls went on a rampage with stimulus hopes and transfer of surplus by the RBI to the government kept the street bullish.

'The broader market too witnessed good activity as the curve of daily corona cases displayed a declining trend,' said S Ranganathan, Head of Research at LKP Securities.

The Reserve Bank of India (RBI) on Friday approved the transfer of Rs 99,122 crore as surplus to the central government for the accounting period of nine months ended March 31.

On the COVID-19 front, the daily rise in coronavirus cases in India remained below 3 lakh for the fifth consecutive day, with 2.59 lakh new cases recorded in a single day, according to the Union Health Ministry data updated on Friday.

Binod Modi, Head-Strategy at Reliance Securities, said, 'As second wave of COVID-19 appears to be weakening, assumption of second wave... to peak-out by the end of May or mid of June holds true and adverse impact of second wave should not be felt beyond 1Q FY22.' All BSE sectoral indices ended with gains, led by bankex, finance, telecom and power which surged up to 3.73 per cent.

Global equities followed Wall Street higher as fears of inflation and the US Fed tightening its monetary policy receded.

Elsewhere in Asia, bourses in Tokyo and Hong Kong closed in the green, while Shanghai and Seoul nursed losses.

Stock exchanges in Europe were largely trading in the positive terrain in mid-session deals.

Meanwhile, international oil benchmark Brent crude was trading 0.84 per cent higher at USD 65.66 per barrel.

The rupee strengthened by 29 paise to end at 72.83 against the US dollar amid a weaker American currency in the overseas market.

Foreign institutional investors were net buyers in the capital market on Thursday as they purchased shares worth Rs 71.04 crore, as per exchange data. PTI ANS ABM ABM

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