Sensex, Nifty rose for a fourth consecutive day, emphasis on buying in pharmaceutical companies, bank stocks

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The stock market recorded an increase for the fourth consecutive day on Monday. Sensex gained 296 points due to buying in medicine, power and bank stocks. The NSE Nifty also closed above the 14,900 marks. In the face of positive signs in global markets, investors did not give much attention to the concern of rising cases of coronavirus. The BSE Sensex rose 295.94 points, or 0.60 per cent, to 49,502.41 points, and the Nifty improved 119.20 points, or 0.80 per cent, to close at 14,942.35 points.

The Sensex has gained 1,248.90 points or 2.58 per cent in the last four trading sessions. Similarly, the Nifty has also registered an increase of 445.85 points i.e. 3.07 per cent in the last four days. Larsen and Toubro were the biggest gainers with the Sensex gaining more than four per cent. Shares of Dr Reddy’s Lab, Sun Pharma, NTPC, IndusInd Bank, Power Grid, ONGC and Mahindra & Mahindra also gained.

In contrast, UltraTech Cement, Infosys, Reliance Industries, HCL Tech and Axis Bank suffered losses. Of the 30 stocks in the Sensex, these five declined. BSE’s index of metals, capital goods, health care, electricity, public utilities and industrial sector grew by 3.53 per cent. At the same time, the index of the information technology sector was in decline.

Vinod Modi, strategic head of Reliance Securities, said, “Despite the concerns of the rise of Kovid-19 and the lockdown imposed in many states, markets are steadily moving forward.” The market was supported by the rise in shares of metal, pharmaceutical, auto and public sector banks during the day. Most sectors’ indices ended in gains.

What Modi said about Sensex and domestic stock markets?

Modi said, “The domestic stock markets have been supported by favourable indications from global markets, the March quarter results being favourable with favourable comments, liquidity measures announced by the Reserve Bank and no nationwide lockdown.”

Vinod Nair, head of research, Geojit Financial Services, said the domestic market is riding on an optimistic wave, which is why buying in stocks of metal, auto and pharmaceutical companies continues to be strong.

Among other Asian markets, Shanghai, Tokyo and Seoul closed at a profit, while Hong Kong’s market closed down. In European markets, there was a trend of loss till the medieval period. Meanwhile, the price of Brent crude in the international market rose 0.53 per cent to reach $ 68.64 a barrel.