Home / News / India /  Sensex up 20% from March lows. Here is what market analysts say

The Sensex today surged 1265 points amid a global rally in equities and expectations of another round of domestic stimulus measures to cushion the impact of coronavirus. The Sensex is now up about 21% from its March lows of 25638.9 On the other hand, the Nifty50 index surged 4% to reclaim 9,100 levels. Global markets were also higher today on hopes that the coronavirus pandemic was nearing its peak globally and governments would roll out more stimulus measures.

US President Donald Trump said he would like to reopen the U.S. economy with a "big bang" if the deaths from the pandemic were on a downward slope, while New York Governor Andrew Cuomo said the state's efforts were helping control the virus in one of the biggest hot spots in the country.

Among sectors, automobiles were the top gainers. The Nifty auto index surged 10%. Pharma and banking stocks also attracted strong buying action.

Among the Sensex stocks, M&M surged 17%, Maruti 13%, Titan 11%, Hero MotoCorp 10%, Bajaj Finance 9%, HDFC 9%, Bajaj Auto 9% while Kotak Bank, ICICI Bank and Axis Bank advanced over 7% each. Indian markets will be closed tomorrow.

Here is what analysts said on today's market rally:

Ranganathan, Head of Research at LKP Securities

"On the back of positive global cues, the market rose led by spirited all-round buying as automobiles, financials and pharmaceuticals led the charge despite profit booking witnessed. Today's trade saw even consumer discretionary and consumer durables stage a comeback ahead of expectations of a stimulus to help MSME weather the pandemic".

Vinod Nair, Head of Research at Geojit Financial Services.

"Indian markets in sync with global markets were up again today on expectations of infections peaking out and for more stimulus measures to be announced. This uptrend seems to be a short term bear market rally and may not be sustainable. In India, there is speculation that the package may help worst affected sectors and MSMEs may get some relief in the package to be announced."

Sumeet Bagadia, Executive Director Choice Broking

"Finally Nifty settled its weekly option expiry at 9111 level with more the 363 points and has given close above 9050 level which is a good sign for the time being, based on which we may see a further upside movement. Moreover, a few large cap counters also helped out the Nifty to climb above 9000 level like HDFC, ICICI Bank, HDFC Bank, RIL, Kotak Bank and Maruti which even settled with good numbers of gain. It seems that the Nifty has turned its table in a positive direction after giving a close above 9,000 levels as it was a second attempt but a successful one with enough volume activity. For the time being, downside support comes at 8700 while upside resistance comes at 9300 then 9600."

Rohit Singre, Senior Technical Analyst at LKP Securities.

"Nifty closed the week at 9111 with strong gains of nearly 13 percent on weekly basis. The index has also given fresh breakouts on daily chart and Nifty Bank index closed the week at 19914 with gains of 15 percent on weekly basis. Technically, Nifty has given good close above strong resistance of 9000 zone. Now, 9000 will act as stiff support for coming week. If it manages to hold above 9,000 mark, then we may see index to march towards its immediate resistance of 9350-9500 zone. Nifty Bank support is coming near 19450-19000 zone. If it manages to hold above these levels, then we some more upside towards the hurdle of 20400-20800 zone".

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