Despite the government’s order to extend the lockdown until May 3, the domestic stock markets opened higher on Wednesday.
Around 9.35 am on Wednesday, the BSE Sensex surged above 550 points, that is, above 1.8 per cent at 31,247.25 points. The Nifty was trading above 1.8 per cent at 9,161.10 points. The gains are indicated to be a result of good performance in the Asian markets.
Financial analysts say there has been a good improvement in the Indian stock markets as compared to the previous week. Analysts also state that the markets are gradually regaining hold as global stocks are recovering. Another good thing about the stock markets is that the extension of lockdown has not the investors nervous, something that happened when Prime Minister Narendra Modi announced the first stage of lockdown.
UPL, Hindustan Unilever Limited, Sun Pharma, Britannia, Axis Bank, Bajaj Finance, Maruti Suzuki, and Kotak Mahindra Bank are some of the top gainers on the Nifty. The investors on D-Street are awaiting the quarter 4 company results of IT major, Wipro. Many brokerages are expecting Wipro to report a flat revenue soon.
Analysts state that the global stock exchanges are also gradually recovering after consecutive suffers for a long time. The United States stock exchanges showed a steady climb on Tuesday, shortly followed by good improvements in the Asian share markets. China also moved up the ladder to regain its hold in the economy, cutting a key-medium interest rate. The climb also paves the way for a much similar reduction in the benchmark loan rates in the markets. This has helped the Morgan Stanley Capital International’s (MSCI) broadest index of the Asia-Pacific shares outside of Japan to edge up 0.3 per cent to a new one-month top. However, China’s Shangai Blue Chips eased 0.2 per cent. Japan’s Nikkei Stock Average was off at 0.5 per cent, although it followed a 3 per cent rise in the previous session. E Mini’s future contracts for the S&P 500 fell by 0.5 per cent and developed a 3 per cent rise in New York.