Alls well that ends well!
At the beginning of April month, the market participants were quite anxious and fear was dominating, as we had one of the sharpest fall in history, in the month of March, when Nifty lost about 23 per cent and the volatility index was surging like a phoenix. However, sentiments on Dalal Street and market across the globe witnessed turning of tides and bulls hit hat-trick of gains on Wednesday. Is this momentum going to continue on Dalal Street? Yes! If we go by the early indications, the momentum is likely to continue and we may witness a gap-up opening as SGX Nifty is indicating gains of double century at the opening bell. As of now, April month has delivered almost 11 per cent gains and as a result, we can conclude it by saying, ‘All’s well that ends well!
On the earnings front as well, it’s a going to be a buzzing day as Reliance Industries and Hindustan Unilever will be the two major corporates to announce their earnings today.
It’s a sea of green for Asian equities on Thursday after Gilead Sciences confirms that the drug proved effective against virus, as per US study. Japan’s Nikkei 225 surged 2.58 per cent, followed by China’s Shanghai Composite and Hong Kong’s Hang Seng, which gained 1.23 and 0.28 per cent, respectively.
Back home, it was a wonderful Wednesday for the markets as the key benchmark indices ends at fresh seven-week highs. BSE Sensex rose 606 points to 32,720 and Nifty climbed 172 points to end at 9,553. The broader market indices, despite ending with decent gains, underperformed the frontline gauges. Talking about the sectoral performance, the defensive sectors are cooling off and witnessing profit taking as Nifty FMCG and Nifty Pharma ended in red, rest all indices, closed with gains. Nifty Metal, Nifty Financial Services and Nifty Media were the top gainers.
On Wednesday, US stocks were seen buoyant despite US GDP decreased at an annual rate of 4.8 per cent in the first quarter. The key catalyst for the buoyant mood on Wall Street was news about Gilead Sciences and Dr Anthony Fauci voiced optimism about Remdesivir drug. Further, US Fed held its interest rate target between 0 and 0.25 per cent and said that it would continue with its aggressive policy until it is comfortable that the economy is back on its feet. In the end, Dow jumped 2.21 per cent, the tech-heavy rose 3.57 per cent and S&P 500 rallied 2.66 per cent. European indices too ended the session on a higher note on Wednesday.