Indian stock markets on Wednesday opened higher for a sixth consecutive session, with Nifty hitting the 10,000 mark for the first time since 13 March, while Sensex surging past 34,000. Benchmark indices rallied tracking gains in global equities, which rose due to optimism over recovery in growth as more economies reopen.
The rise for six sessions is indices' biggest winning streak since October, with both Sensex and Nifty jumping nearly 11.5% each in that period. At 9.30am, Sensex rose 1.55%%, or 592 points, to 34,362, while Nifty 50 gained 1.6%, or 163 points, to 10,169.
"(Markets) continued to cheer gradual easing of the lockdown and good monsoon prediction. Reassurance by PM (Prime Minister Narendra Modi) in CII’s annual session that India will return to growth boosted sentiments further. Institutional buying over past few sessions also supported the market. Global cues continue to be positive as investors shrug off political unrest in the US, worries about a second wave of the coronavirus and US-China tensions", said Motilal Oswal Financial Services in a note to its investors.
India’s phased easing of restrictions will see malls, restaurants and places of worship reopen from 8 June after the world’s most stringent stay-at-home curbs to stem the spread of coronavirus brought the country's economic activities to a standstill.
"Market are now pinning their hopes on global recovery and shrugging off concerns about the deepening rift between US and China and the damaging effect of the virus on the global economy", said Sugandha Sachdeva vice president-metals, energy & currency research, Religare Broking.
Investors are cautious ahead of the cabinet meeting due later today. Investors will also watch data on Purchasing Managers' Index (PMI) services and composite data for May.