Robust gains in shares of bank and financial heavyweights kept the Indian market benchmarks higher on May 27.
The Sensex jumped more than 1,000 points while the Nifty went past 9,300 in intraday trade. At around 1415 hours, the Sensex was up 795 points at 31,404, while the Nifty was at 9,257, 228 points higher.
Sectorally, BSE Bankex and Finance jumped up to 6 percent but consumer durables and healthcare traded in the red.
Here the top 4 factors that pushed the market higher:
Re-opening of the economies
Easing of restrictions and the gradual re-opening of the economies across the world is underpinning sentiment. The disruption caused by COVID-19 pandemic will linger on but the market is taking comfort from the re-start of business activity, hoping that the country's economy will gradually come back on track.
"With many countries starting to ease lockdown restrictions imposed to stop the spread of the virus, which has infected over 5.5 million people globally, equity markets are rallying on hopes for a swift return to health and prosperity," a Reuters report said.Bargain hunting in banks, financials
Experts indicate that bargain hunting in banks and financial counters gave a fillip to the market. Shares of Axis Bank, ICICI Bank, Kotak Mahindra Bank, IndusInd Bank and Bajaj Finance jumped between 5 and 12 percent.Hopes of a stimulus
With the lockdown in its last week, the hopes of government stimulus are also growing. Participants are expecting some fresh measures from the government before the economy opens fully.Technical reasons
The volatility determined by India VIX fell 0.05 percent to 31.45 levels. Volatility has been falling for the last five sessions, which is supporting the index to hold the immediate support zones with a rangebound bias.Experts are of the view that if the Nifty sustains above 9,160, then long positions can be considered for modest targets of 9,350, whereas shorts should be preferred below 8,968 levels for a target of 8,850.