BackIndian equities end 1% higher but off day's highs as covid vaccine hope fades
Asian peers had rallied on hopes of a vaccine following a promising development from a Moderna trialRupee strengthened 27 paise or 0.36% to close at 75.64 against the US dollar
PremiumNEW DELHI: Indian stock markets ended 1% higher but off their intraday gains of over 2% as excitement about a potential covid-19 vaccine fizzled out. Rising cases of infection in the country weighed on investor sentiment.
The BSE Sensex ended at 30,196.17, up 167.19 points or 0.6%, while the 50-share Nifty closed the day at 8,879.10, up 55.85 points or 0.63%.
Asian peers had rallied on hopes of a vaccine following a promising development from a Moderna trial. Stocks in Japan, Hong Kong, China and Korea had gained 1-2%.
Moderna Inc reported “positive" phase one results for a potential coronavirus vaccine. The company said after two doses, all 45 trial participants had developed coronavirus antibodies.
Meanwhile in India, covid-19 cases crossed the 1-lakh mark.
Additionally, with stimulus measures seen inadequate to boost demand in the short term, investors exercised caution.
“Initially, the bias was on the positive side, thanks to firm global cues, however selling pressure in index majors mainly from the banking pack pared the gains as the session progressed. The mixed trend was witnessed on the sectoral front wherein telecom, auto and IT managed to post decent gains while capital goods and realty ended with the losses," said Ajit Mishra, vice president - research, Religare Broking Ltd.
The telecom index was the top gainers among sectoral indices today. A rally in shares of Bharti Airtel and Vodafone idea drove telecom index over 10% higher. Bharti Airtel Ltd surged over 11%, joining the club of top five most valued companies, replacing Infosys Ltd and HDFC Ltd.
Bharti reported loss of ₹5,237 crore in the March quarter, mainly on account of making provision for paying statutory dues. However, it had reported strong average revenue per user (ARPU) after the tariff hike in December and healthy 4G subscriber additions. The company had increased tariffs by 40% in December.
The rupee strengthened 27 paise or 0.36% to close at 75.64 against the US dollar on Tuesday. Since the beginning of 2020, the rupee had lost 5.63%.
However, analysts feel that rupee’s rise could be a temporary phenomenon, especially since global and domestic equities have reacted positively to the potential virus vaccine, while a weak dollar index has aided. The rupee’s risk of depreciation still remains as domestic concerns surrounding the virus will take the forefront.
Cases in India have risen exponentially, and fiscal deficit concerns surrounding the stimulus package will weigh on the appetite going forward.
The 10-year government bond yield settled at 5.74%.
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