Sensex zooms 976 pts as financial stocks pump market mood

Equity benchmark Sensex skyrocketed 976 points on Friday, led by gains in index heavyweights HDFC twins, ICICI Bank and SBI as steady earnings reported by key financial stocks lifted investor sentiment.

The 30-share BSE index ended 975.62 points or 1.97 % higher at 50,540.48, and the broader NSE Nifty soared 269.25 points or 1.81 % to 15,175.30.

HDFC Bank was the top gainer in the Sensex pack, rallying over 4 %, followed by SBI which zoomed after the lender posted robust quarterly earnings.

The country’s largest lender reported an 80 % surge in standalone net profit at Rs 6.450.75 crore for the fourth quarter ended March 2021, aided by decline in bad loans.

IndusInd Bank, ICICI Bank, Axis Bank and HDFC were also among the gainers.

On the other hand, PowerGrid and Dr Reddy’s were the laggards.

Binod Modi Head-Strategy at Reliance Securities, said domestic equities recovered sharply mainly led by strong rebound in financials.

“Steady earnings reported by BFSIs including SBI and emerging clarity about asset quality in the backdrop of receding daily caseload in second wave aided financials to rebound. Barring pharma, buying momentum was seen across all sectors,” he said.

Further, assumption of second wave of COVID-19 to peak by the end of May or mid of June holds true and adverse impact of second wave should not be felt beyond Q1 FY22, he noted, adding that a visible decline in daily caseload has offered comfort to investors.

Elsewhere in Asia, bourses in Shanghai and Seoul ended on a negative note, while Tokyo and Hong Kong closed with gains.

Stock exchanges in Europe were largely trading in the positive terrain.

Meanwhile, international oil benchmark Brent crude was trading 0.84 % higher at USD 65.66 per barrel.