Indian shares jumped more than 3% today to extend gains to the fourth day as sentiment improved on promising early results from a COVID-19 drug trial. The indexes closed the month with about 14% gains or 4,200 points higher. This is the biggest monthly gain since May 2009 after rebounding from a near 23% slump in March as the coronavirus hammered markets. India is also expected to roll out a stimulus package to help mitigate the damage from the health crisis. The Sensex today closed 3% or about 1,000 points higher at 33,717 while Nifty settled 3.2% higher at 9,859. The Sensex is up about 31% from March 24 lows of of 25,638.
Global markets today rallied after early results from US-listed Gilead’s trial of its drug remdesivir showed on Wednesday it helped speedy recovery from the illness caused by the coronavirus.
Among the Sensex stocks, ONGC today rallied 13%, HCL Tech 10%, Hero MotoCorp 10%, TCS 6%, Infosys 6% and Tata Steel 6%.
Here is what analysts said on today’s market action:
Sanjeev Zarbade, VP PCG Research, Kotak Securities
“Most major global markets have rallied in the current week as several countries have started to talk about lifting the lockdown. Reports of encouraging results about Gilead’s drug in treating Covid-19 as well as starting of human trials on Covid 19 vaccine also fuelled the rally. Improving market sentiments lifted crude oil prices. After the strong rally from the lows of March 2020, risk of a correction has increased in the near term; though probability of the market going deep below the 30,000 level looks remote. Investors should keep this in mind and trade accordingly.”
“Market ended positive for the fourth day in a row, on the back of positive signals from global markets. Successful trials of a Covid-19 vaccine helped the global markets gain some positivity. Domestically, indications of easing of lockdown measures and stimulus hopes helped drive the markets. Being F&O expiry day today, short covering and roll-overs in the market also contributed to the gains. Next week outlook will be driven by the way forward for resumption of business after lockdown, announcement of any stimulus package and stock specific earnings results.”
Rohit Singre, Senior Technical Analyst at LKP Securities.
“Nifty has showed a good strength in the month of April as it expired with gains of 14 percent and formed a bullish candle after hitting its 100 MA on monthly chart. Now index has good resistance near 10,000 mark so one can initiate profit booking around 10,000 mark. If nifty manages to break 10,000 decisively then we may see current move to extend further. Good support for nifty is coming near 9600-9500 zone. Nifty bank closed at 21534 with gains of more than 12% on monthly chart, support for Nifty Bank is coming near 21100-20800 zone and resistance is coming near 22000-22300 zone”.