Sensex rallies 522 points; bank stocks shine

BSE Sensex settles 522.01 points or 1.57% higher at 33,825.53; NSE Nifty jumps 152.95 points or 1.56% to 9,979.10

Equity benchmark Sensex rallied 522 points on June 2 led by gains in banking stocks as investors seemed gathering more confidence from staggered opening of the economy by the government.

After hitting a high of 33,866.63 during the day, the 30-share index settled 522.01 points or 1.57% higher at 33,825.53.

Similarly, NSE Nifty jumped 152.95 points or 1.56% to 9,979.10.

Bajaj Finance was the top gainer in the Sensex pack, soaring over 8%, followed by Kotak Bank, IndusInd Bank, HDFC, PowerGrid, Axis Bank, ICICI Bank and L&T.

On the other hand, Maruti, ITC, NTPC and Nestle India were among the laggards.

According to analysts, market opened on a positive noted as gradual easing of the lockdown boosted investor sentiment which further strengthened with the buoyancy in the global markets.

Further, traders said Prime Minister Narendra Modi’s pledge to undertake more structural reforms to change the course of the country enthused market participants.

A day after Moody’s downgraded India’s credit rating to a notch above junk status on growth concerns, Modi asserted that the country will definitely get back its economic growth and said reforms undertaken during the lockdown will help the economy in the long-run.

Globally, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a positive note, and exchanges in Europe began trade with significant gains.

International oil benchmark Brent crude futures were trading 2.95% higher at $39.45 per barrel.

On the currency front, the rupee rebounded from the day’s low to provisionally close 18 paise higher against the U.S. dollar at 75.36.

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