Indian shares rose sharply Wednesday in an unprecedented extended session, with analysts attributing the up move to short-covering ahead of F&O expiry.
Improving prospects of an economic recovery, Fed Chairman Powell’s dovish statement in his latest testimony and the government announcement of lifting embargo on the grant of government businesses to private banks also boosted sentiment.
An improvement in India’s macroeconomic conditions is likely to alleviate stress for the country’s banking sector, although a hit from Covid-19 pandemic is inevitable,
according to “Banking Industry Country Risk Assessment: India”, a report by S&P Global Ratings.
Rating agency S&P said the Indian government’s strong efforts to shield banks from the Covid-19 pandemic have been largely successful.
The benchmark S&P BSE Sensex climbed as much as 1,030.28 points, or 2.07 percent, to 50,781.69, while the broader NSE Nifty index ended up 274.20 points, or 1.86 percent, at 14,982.
After rates on the NSE stopped updating due to a technical glitch earlier in the day, both BSE and National Stock Exchange extended trading hours till 5 pm.
Bajaj Finance, ICICI Bank, Axis Bank, Coal India and HDFC Bank jumped 3-5 percent in the Nifty pack, while TCS, JSW Steel, Dr Reddy’s Laboratories, Power Grid Corp and UPL dropped 1-2 percent.
Market Analysis
Sensex, Nifty Rally On Short Covering
2021-02-24 12:23:40
