Indian markets surge 1% tracking gains in global equity markets1 min read . Updated: 29 Apr 2021, 09:43 AM IST
- This was the fourth consecutive session when markets rose, with both Nifty and Sensex gaining 4.8% in this period
Indian markets on Thursday surged 1%, further tracking gains in global equity markets amid the prospects of further stimulus to fuel the recovery from the pandemic.
This was the fourth consecutive session when markets rose. Both Nifty and Sensex gained 4.8% in this period.
At 9.30 am, the benchmark Sensex rose 0.7% to 50,093 points while Nifty climbed 1% to 15,030 points.
Overnight, President Joe Biden laid out a $1.80 trillion social support plan. The package of tax credits and domestic priorities will be funded partly by the largest tax increases on wealthy Americans in decades.
Meanwhile US federal reserve signalled it is not ready to consider scaling back policy support. The central bank said it will continue with asset purchases and described inflation pressures as likely to be transitory.
"The favorable global market scenario is playing an important role in this vaccine-powered hope trade. The Federal Open Market Committee (FOMC) meet, as expected, has kept rates and the bond-buying programme unchanged, reiterating the accommodative stance. Sustained bond-buying has the risk of higher asset price inflation and froth in the market," said V.K. Vijayakumar, chief investment strategist at Geojit Financial Services.
"Even while enjoying the bull run, investors have to be guarded against potential froth and bubbles. The localized lockdowns and curfews have not impacted industrial activity much but there is a downside risk to GDP growth and earnings estimates. The pain in segments such as aviation, hotels, restaurants and retail trade will linger for some time. Financials have emerged stronger after the initial good Q4 results," Vijayakumar added.
Better than expected earnings and dropping infection cases also boosted sentiments among investors.
"Markets gains led by good results and strong management commentary from Axis Bank, Bajaj Finance and TVS Motors, which boosted overall market sentiments. Despite the sharp surge in both daily cases/daily deaths in India, and extension of lockdown by Maharashtra, investors seem to be looking beyond the current scenario, building in optimism from the vaccination drive and the strong earnings season so far," said Siddhartha Khemka, head-retail research, Motilal Oswal Financial Services.
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