Global cues lift equities, IT stocks surge

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SME Times News Bureau | 06 May, 2021
India's key benchmark equity indices rose for the second straight day on Thursday, following healthy global cues.

Both the indices opened higher with volumes being in line with recent averages.

Globally, Asian shares rose on Thursday and commodity prices held near multi-year highs as investors switched to cyclicals amid expectations of a strong economic recovery.

However, European shares gave up early gains ahead of the Bank of England's monetary policy decision even as corporates continued reporting encouraging numbers.

On the domestic front, investors cheered on the news that monsoon rains that mark the start of the four-month rainy season are likely to enter India through the southern coast around June 1, in line with typical patterns.

India's weather office will issue its official forecast for this year's monsoon onset on May 15.

Among sectors, IT, auto, metals and oil and gas indices rose the most while there were no sectoral losers.

The S&P BSE Sensex closed at 48,949.76, higher by 272.21 points, or 0.56 per cent, from its previous close.

The Nifty50 of the National Stock Exchange ended the day's trade at 14,724.80, up 106.95 points, or 0.73 per cent, from its previous close.

"Nifty moved above the high of May 4, thus signalling that the May 3 bottom of 14,416 is a short term bottom. The next resistance for the Nifty is at 14,846 while the support is at 146,01," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"FPI selling seemed to be subdued today, while local traders continued to ramp up prices of select small and midcap stocks."

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "Global cues were positive as investors continue to monitor corporate earnings and signs of economic recovery from the Covid-19 pandemic impact. On the domestic side, Nifty continued its positive momentum for second day in a row post US decision to support waiving IP protections for Covid-19 vaccines."

"However, spike in daily cases after five days of decline, continue to worry the market as the increasing lockdowns/restrictions would further slowdown the economic recovery. On the other hand, the 4QFY21 results is resulting in lot many stock specific action in the market."