Bombay Stock Exchange
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Business & Economy

Partial economic re-start, probable COVID-19 vaccine lift equities

IANS

Mumbai, May 19, 2020

Partial opening of domestic retail markets in several states, along with positive global cues on the back of a probable new anti COVID-19 vaccine, pushed India's key stock indices higher on Tuesday.

The rise was in line with the gains in the Asian markets.

Analysts cited the further opening up of the economy under lockdown 4.0 as a major factor for the upward mobility.

The Sensex closed at 30,196.17, up by 167.19 points or 0.56 per cent from the previous close of 30,028.98.

It had opened at 30,450.74 and touched an intra-day high of 30,739.96 and a low of 30,116.82 points.

The Nifty50 closed at 8,879.10, higher by 55.85 points or 0.63 per cent from the previous close.

Sectorally, top gainers were the BSE Telecom, Power and Auto indices, while the top losers were the BSE Capital Goods, Realty and Bankex indices.

"Markets ended with decent gains on Tuesday after a sell off from the highs. The Nifty had opened on a positive note and touched a high of 9,030 before witnessing a sell off," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"Technically, with the Nifty failing to sustain at the highs, the bears do seem to have an upper hand. Further downsides are likely once the immediate supports of 8,855-8,806 are broken."

According to Vinod Nair, Head of Research at Geojit Financial Services: "Markets around the world rallied on the back of a positive vaccine trial in the US, because of which Indian markets also witnessed a positive opening. It later pared gains to end up by just around 0.6 per cent."

"Although trial of the vaccine seemed to give positive results, the development of this is still in the very initial stage and is some time away from approvals and production. Meanwhile in India, confirmed infections crossed the one lakh mark, with no signs of slowing down. Additionally, with the stimulus measures seen to be inadequate to boost demand in the short term, investors need to be cautious in this market, as the uncertainties still persist."

IANS

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