Extending gains into the second consecutive session, the Indian equity benchmarks closed in the green on May 28 as investor sentiment remained positive on reports of reopening of more economies and a bigger than expected stimulus plan for the European Union.
Asian peers, on the other hand, traded mixed amid rising US-China tensions but the reopening of businesses and a 750 billion euro EU stimulus plan helped investors play their bets.
Sensex closed 595 points, or 1.88 percent, higher at 32,200.59 while Nifty settled 175 points, or 1.88 percent, up at 9,490.10.
Broader markets slightly underperformed as the BSE Midcap and Smallcap indices rose 1.34 percent and 1.42 percent, respectively.
The overall market capitalisation of BSE-listed firms jumped to Rs 125.5 lakh crore on May 28 from Rs 123.6 lakh crore on May 27, making investors richer by Rs 1.9 lakh crore in a single day.
The market remained in the green throughout the session on the last day of the May F&O series expiry. In the May F&O series, Sensex lost 4.5 percent while Nifty retreated 3.75 percent.
"A huge EU stimulus plan provided a boost to European shares while Asian shares were affected by the US-China diplomatic issues. Indian markets are banking on the continued resumption of economic activities, in spite of still a high number of new infections," said Vinod Nair, Head of Research at Geojit Financial Services.
"Further stimulus measures are also expected to boost demand in the economy and help the most impacted sectors to recover. The market is rising on the back of expectations while there has been little change in ground realities," Nair said.
Ajit Mishra, VP - Research at Religare Broking is of the view that this rebound has relieved the bulls significantly after the sharp correction of the last three weeks.
"Nifty has managed to surpass its immediate and crucial hurdle at 9,450 so it may be heading towards 9,650-9,750 levels. We feel banking and financials will continue to play a critical role. Amid all, market participants are likely to keep a watch on GDP data scheduled on May 29 while on the global front any news on US-China tussle will be on investors’ radar. Further, the on-going earning season would keep stock-specific volatility high," he said.
Top Nifty gainers included Zee Entertainment Enterprises, Eicher Motors and Larsen & Toubro.
Top laggards included Wipro, ITC and Cipla.
Stocks & Sectors
All sectoral indices closed in the green, with BSE Capital Goods, gaining 5.11 percent, emerged as the top gainer. It was followed by Auto and Industrials that rose 3.54 percent and 3.49 percent, respectively.
BSE Bankex, Finance, Realty, Metal and Consumer Discretionary Goods indices logged gains of over 2 percent each.
Volume spike of more than 100 percent was seen in stocks like Just Dial, NCC, BHEL, Zee Entertainment Enterprises and Motherson Sumi Systems.
Long Buildup was seen in stocks like Zee Entertainment, NCC, Eicher Motors, Godrej Consumer Products and Motherson Sumi Systems.
Short Buildup was seen in stocks like Punjab National Bank, United Spirits, Adani Power, Mahindra & Mahindra Financial Services and Torrent Pharmaceuticals.
As many as 257 stocks, including D-Mart, Bombay Dyeing, Mahindra CIE Automotive, Future Retail and Finolex Cables, hit their upper circuits on BSE.
Stocks in news
Shares of Sun Pharma gained about 2 percent after the company has reported a consolidated profit of Rs 399.8 crore for the quarter ended March 2020, declining 37.1 percent YoY due to one-time loss of Rs 260.6 crore.
Shares of Dabur India rose 4.49 percent after the firm witnessed an exponential growth in the sales of its Chyawanprash and honey range, according to a Business Standard’s report.
Shares of United Spirits shed 2.45 percent after the company reported a decline of 57.82 percent to Rs 49.3 crore in its consolidated net profit for the fourth quarter ended March 2020, mainly impacted by COVID-led disruptions in the market and consumption slowdown.
Shares of Ujjivan Financial Services surged over 8 percent after the company's net profit rose 48.41 percent to Rs 64.04 crore in the quarter ended March 2020 as against Rs 43.15 crore during the previous quarter ended March 2019.
Shares of Federal Bank rose over 4 percent after the bank reported a 21 percent YoY fall in its March quarter (Q4 FY20) net profit at Rs 301.2 crore against Rs 381.5 crore, on the back of higher provisions, reported CNBC-TV18.
Nifty rose nearly 2 percent and formed a bullish candle on daily charts again as closing was higher than opening ticks.
Experts expect the bullish momentum to continue in the coming sessions if the index surpasses its 55-day exponential moving average (DEMA).
Mazhar Mohammad of Chartviewindia.in advised traders to consider booking profits if Nifty is unable to get past 9,520 levels in the coming session.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.