Indian shares extend gains on Thursday tracking positive Asian shares, which gained amid growing optimism about economic recovery from the coronavirus pandemic. As of 9:20 a.m, the BSE Sensex was up 177.60 points or 0.56% at 31,782 while the Nifty 50 index traded 0.67% or 62.20 points higher at 9,378.50. Gains in the market were led by banking stocks; Nifty Bank, the banking sub-index of NSE was up 1.53%.
So far this month, Indian markets have underperformed other emerging markets, due to which there is short covering and catching up, say analysts. Some amount of short covering is also because of the expiry of May series derivative contracts. 'What’s happening globally is rubbing off here. Globally, countries have eased rules on lockdown that are lending optimism that things will improve from here,' Mr. Andrew Holland, CEO, Avendus Capital Alternate Strategies was quoted as saying.
Among Nifty stocks, ONGC was the top gainer, up 2.88% followed by L&T and Axis Bank, which gained 2.56% and 1.88% respectively. Tata Steel, Tata Motors, Gail, Zee Entertainment, UPL, HDFC, ICICI Bank, IndusInd Bank, Vedanta were the other prominent gainers in the Nifty.
Meanwhile, M&m was the top loser in Nifty, down 1.62% followed by Infosys and ITC, which fell 1.28% and 1.25% respectively. TCS, Wipro, Bajaj Auto, Tech Mahindra, HCL Tech, Dr Reddy's Lab were the other losers in the index.
On Wednesday, the Sensex closed 995.92 points or 3.25% higher at 31,605.22 while the Nifty 50 index settled 3.17% or 285.90 points higher at 9,314.95.