Sensex Gains Over 500 Points To Close Above 50,000 On First Day Of FY'22
Participants on Dalal-Street cheered the day's gains as the BSE Sensex climbed back above 50,000 backed by wide-spread buying across all major sectors on Thursday, April 1, the first day of the new financial year 2021-2022.
Analysts said this positive trend may continue in the short-term as the benchmarks have recovered from their stressed levels.
Advances in Metal and Financial heavyweights pushed the 30-share pack Sensex to close at 50,029.83, higher by 520 points, while the NSE index closed higher by 176 points at 14,867.35.
IndusInd Bank and Bajaj Finance were the top boosts for Sensex as they gained nearly five and three per cent respectively. 26 out of 30 shares closed with gains in the BSE index.
JSW Steel was the top gainer in the entire session on Thursday after the company announced that it has commenced production of Hot Rolled Plates from the new 5 MTPA Hot Strip Mill facility at its Dolvi Works. The stock surged nearly nine per cent in the day's trade and marked a fresh record high of Rs 512.95. Hindalco, Tata Steel, and Adani Ports were other top index gainers.
Among the sectors, except for FMCG, all other sectors closed with gains as participants went strong on buying across the board. The metal index gained five per cent, Banks gained nearly two per cent, the Auto sector gained nearly two per cent and PSU Banks gained over two per cent.
The Auto sector saw consistent buying as investors tracked the strong numbers of companies for the month of March. Ashok Leyland gained over four per cent. The company posted growth of 710 per cent in its March sales as it grew from 2126 units in March'20 to 17231 units in March'21.
The overall market sentiment supported gains as around 2120 shares closed with advances and 727 shares declined. The declines in the market were led by stocks of HUL, HDFC Life, and Nestle.
How will markets perform further?
Experts in the market feel that positives from global markets and boosted vaccination process in the country will keep the sentiment going in the short-term. Further, as the new financial year proceeds, investors will bet heavily on strong expectations from Q4 earnings of companies backed by demand growth and economic recovery in the country.
"Breakout above 14900 we can expect the market to show some positive momentum and trade till the levels of 15200", said Likhita Chepa from CapitalVia Global Research.
However, in the present situation, rising infections will play a spoilsport in the market as restrictions in the economic activities due to lockdown in various areas of the country will hurt the sentiment of investors and traders.
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