Top gainers in the 30-share BSE pack included Mahindra & Mahindra, Bajaj Auto, Titan, Bajaj Finance, HDFC Bank and PowerGrid with their stocks rising as much as 5.91 per cent. (File photo)
NEW DELHI: Equity indices surged for the third straight session on Tuesday powered by gains in auto and financial stocks. The benchmark BSE Sensex jumped 613 points or 1.24 per cent to close at 50,193; while the broader NSE Nifty moved 185 points or 1.24 per cent higher to settle at 15,108.
Top gainers in the BSE pack included Mahindra & Mahindra, Bajaj Auto, Titan, Bajaj Finance, HDFC Bank and PowerGrid with their stocks rising as much as 5.91 per cent.
On the NSE platform, except for Nifty FMCG (fast-moving consumer goods), Nifty Pharma and Nifty PSU Bank, all other sub-indices finished in green Nifty Auto outperforming the index by rising as much as 3.22 per cent.
Investors sentiment remained upbeat as the daily rise in domestic Covid-19 cases stayed below the 3,00,000-mark for a second straight day.
India’s daily coronavirus cases rose by 2,63,533, remaining below the 3,00,000 mark first seen on May 17 after April 21. However, deaths rose by a record of 4,329.
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“Positive trigger for the market now is steadily declining fresh Covid cases,” VK Vijaykumar, chief investment strategist at Geojit Financial Services, said.
“The latest numbers indicate a continuation of this positive trend. The market is discounting progressive lifting of the widespread lockdowns starting in early June. Even though growth and earnings will be impacted in Q1, smart recovery can be expected in the subsequent quarters,” he added.
In the previous session, Sensex zoomed 848 points or 1.74 per cent to end at 49,581; and Nifty surged 245 points or 1.67 per cent to settle at 14,923.
“We expect the churn below the index to continue even as the index outlook appears improved going into 2H21,” analysts at Morgan Stanley said, adding that cross-asset and sentiment indicators are neutral on equities.
The challenge for equities comes from waning liquidity and valuation support, they further mentioned.
The American brokerage maintained its 55,000 points target for end-2021 for the benchmark, giving it a 50 per cent probability of coming true. In the ‘bull’ scenario, the Sensex can rise to 61,000 points by December 2021, while in the ‘bear’ scenario it can crash to 41,000 points.