Sensex climbs Mount 48,000 as investors cheer Covid-19 vaccine nod

 

The Sensex ended the session at 48,177, following a gain of 308 points or 0.64 per cent. The Nifty, on the other hand, rose 114 points, or 0.8 per cent, to end the session at 14,133

The benchmark Sensex on Monday crossed the 48,000-mark for the first time as investors cheered the approval to two Covid vaccines by the Indian authorities.
The drug regulator, on Sunday, had given its final nod to the vaccines developed by AstraZeneca with Oxford University and Bharat Biotech. The Sensex ended the session at 48,177, following a gain of 308 points or 0.64 per cent. The Nifty, on the other hand, rose 114 points, or 0.8 per cent, to end the session at 14,133.

It took five sessions for the Sensex to reach the 48,000 level from 47,000.

However, banking stocks fell and Reliance Industries made only marginal gains after markets regulator Securities and Exchange Board of India (Sebi) fined the company.

“Every dip is being considered by traders as an opportunity to buy. Global markets have kicked off the year on a positive note as investors across the globe are optimistic about economic recovery on reports of vaccine approvals & fiscal support,” said Vinod Nair, head of research, Geojit Financial Services.

Investors were also enthused by the signs of a recovery in India’s manufacturing sector. IHS Markit’s India Manufacturing Purchasing Managers’ Index (PMI) rose from 56.3 in November to 56.4 in December. A reading of above 50 indicates an improvement.

Goods and services tax (GST) collections in December, too, showed an unexpected year-on-year growth of 11.6 per cent and further boosted sentiment. The mop-up in December was the highest monthly collection.

The equity markets in Asia rose on the back of optimism about the roll-out of coronavirus vaccines and hopes of a continued central bank and government support to economic recovery, especially in the western nations.