Indian shares rise on downward trend in Covid-19 cases

Reuters | Updated on June 01, 2021

The blue-chip NSE Nifty 50 index rose 0.18 per cent to 15,611.30

Indian shares extended gains on Tuesday, as investors took hope from a downward trend in daily Covid-19 cases while taking cues from a global rally inequities.

The blue-chip NSE Nifty 50 index rose 0.18 per cent to 15,611.30 by 0345 GMT, while the benchmark S&P BSE Sensex climbed 0.19 per cent to 52,026.39. Both the indexes closed 1 per cent higher on Monday, building up on gains posted last week.

“The ongoing bull run in the market has taken even the incorrigible optimists by surprise,” said V K Vijayakumar, chief investment strategist at Geojit Financial Services.

India on Tuesday reported its lowest daily increase in new infections since April 8 at 127,510, and staying below the 2,00,000-mark for the fifth day.

Also read:Sensex, Nifty to open positive on robust economic data

Meanwhile, the country’s economic growth picked up to 1.6 per cent year-on-year in the January-March quarter, better than the 1.0 per cent growth forecast of analysts in a Reuters poll.

However, economists are increasingly pessimistic about the current quarter after a huge second wave of Covid-19 infections hit the country last month.

Goldman Sachs on Tuesday cut its second-quarter GDP forecast for India, and said it now expects a 27.6 per cent annual contraction inthe quarter from 20.5 per cent in the earlier forecast.

Financials stocks provided support, with mortgage lender HDFC Ltd and Kotak Mahindra Bank Ltd being among the top boosts to the Nifty 50, rising 1.6 per cent and 0.6 per cent , respectively.

Globally, equities have risen in the past week on improved investor sentiment after US inflation outlook. In Asia, markets rose on Tuesday ahead of European and US data this week that may offer cues on global economic health.

Published on June 01, 2021

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