Indian market rallied for the fourth consecutive day in a row on April 30 as bulls pushed the S&P BSE Sensex above 33k, while Nifty50 also reclaimed 9,800 levels tracking positive global cues as well as stimulus hopes back home.
Sectorally, the action was seen in metals, IT, auto, banks, capital goods, and consumer durable stocks.
Nifty Bank rose more than 2 percent supported by gains in Bandhan Bank, Federal Bank, RBL Bank, ICICI Bank, and Axis Bank, etc. among others.
We have collated a list of four factors which could be fuelling rally on D-Street:
Strong Global Cues:
Yes, Indian markets woke up to some strong gains seen on Wall Street, and a steady trend was seen in other Asian markets which could certainly have a rub-off effect on Indian markets as well.
Asian stocks rose to a fresh seven-week high. Japan's Nikkei, returning from a holiday on Wednesday, jumped 2 percent to a seven-week high as well.
Australia's ASX 200 rose 2.3 percent. The Shanghai Composite rose 1 percent. Markets in Hong Kong and South Korea were closed for public holidays, said a Reuters report.
Gilead's Remdesivir trial data lift sentiment:
US drug major Gilead Sciences on April 29 announced encouraging preliminary clinical trial data of its experimental antiviral drug Remdesivir that's been considered as a potential medication against novel coronavirus, or COVID-19, pandemic.
The study showed that 64.5 percent of the patients who received the shorter five days of treatment have recovered, compared with 53.8 percent of the group who were treated for 10 days.
The Remdesivir study is closely watched by medical experts and governments across the world as the pandemic had claimed the lives of around 2.2 lakh people. As of now, there are no approved medicines for COVID-19.
Also read - Coronavirus | Why Gilead's Remdesivir trial data is significant in fight against COVID-19
US Fed leaves rates near zero:
The U.S. Federal Reserve left interest rates near zero and gave no indication of lifting them any time soon. The US Fed chair Powell warns worst is ahead, vows continued support.
The U.S. economy suffered its sharpest decline in 11 years, with the first-quarter GDP contracting at a 4.8 percent quarterly annualized rate.
The U.S. Treasury Secretary Steven Mnuchin said on Wednesday he is ready to invest more capital in new or expanded Federal Reserve coronavirus rescue lending programs but is not considering more aid to struggling airlines at the moment, said a Reuters report.
Mnuchin told reporters during a video news briefing that he was deliberately holding in reserve some $259 billion from the $2.2 trillion coronavirus rescue legislation passed in late March, it said.
Continuity of business activity:
The Ministry of Home Affairs (MHA) said the government will be issuing new guidelines to fight the novel coronavirus pandemic and that the same will come into effect from May 4, a day after the second phase of national lockdown ends.
"Details regarding this shall be communicated in the days to come," MHA said. This could possibly mean that the government is looking at easing some of the restrictions.
(With inputs from Reuters)