Indian markets gained on Wednesday despite the 21-day nationwide lockdown imposed on the country as positive global markets boosted investors' sentiments. As of 9:23 am, the Sensex was up 483.41 points or 1.81% at 27,007.28 while the Nifty50 index traded 105 points or 1.35% higher at 7,906. Gains in the market were led by IT, pharma and FMCG stocks.
Addressing the nation on Tuesday, the Prime Minister had announced a 21-day nationwide lockdown in order to help break the chain of infection. Except for essential services, all other services will stop and people will stay inside their homes to avoid getting infected by Covid-19. Analysts say the lockdown will have serious repercussions on the economy but it is essential to combat the spread of the virus.
Among Nifty stocks, Reliance Industries was the top gainer up 7.10% at Rs 1009. According to a report in Financial Times, technology giant Facebook is in talks to buy10% stake in Mukesh Ambani’s Reliance Jio as the company wants to expand its presence in the country. Nestle, Tech Mahindra, Cipla, PowerGrid Corporation were the other major gainers in the Nifty rising between 2.3-3.25%.
Meanwhile, Yes Bank was the top loser in Nifty, down 7.86% followed by IndusInd Bank, L&T, Axis Bank, which fell between 2-5.6%.
On Tuesday, Sensex gained 692.79 points or 2.67% to close at 26,674.03 while the Nifty settled 190.80 points or 2.51% higher at 7,801.05.
Elsewhere, other Asian shares traded with strong gains following Wall Street's big gains as U.S. Congress appeared closer to passing a 2 trillion dollar stimulus package to curb the coronavirus pandemic's economic toll. Japan's Nikkei surged 5.595, Hong Kong's Hang Seng rallied 2.12% while Korea's Kospi added 4.71%. The Dow Jones Industrial Average in the US soared 11.37% on Tuesday, registering its biggest single-day percentage gain since 1933.