Sensex zooms 976 pts as financial stocks pump market mood

Mumbai, May 21 (PTI): 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 per cent higher at 50,540.48, and the broader NSE Nifty soared 269.25 points or 1.81 per cent to 15,175.30. HDFC Bank was the top gainer in the Sensex pack, rallying over 4 per cent, followed by SBI which zoomed after the lender posted robust quarterly earnings.
The country’s largest lender reported an 80 per cent 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. The Taiex in Taiwan led gains among the region’s major markets, rose over 1%.
Mainland Chinese markets erased early gains and currently trading slightly lower, with the Shanghai Composite down 0.45% while the Shenzhen Component down by 0.20%.
In Hong Kong, the Hang Seng index edged 0.26% lower. Japan’s Nikkei 225 rose 0.72% while the Topix index gained 0.62% and South Korea’s Kospi advanced 0.77%.
Meanwhile, in Australia, the S&P/ASX 200 hovered above the flatline.
Stock exchanges in Europe were largely trading in the positive terrain. The Stoxx Europe 600 index SXXP, +0.50% was flat at 442.25 and indicating no change on the week. The German DAX DAX, +0.23% rose 0.1%, the French CAC 40 PX1, +0.55% added 0.3%, and the FTSE 100 UKX, -0.04% fell 0.5%. The pound GBPUSD, +0.27% and euro EURUSD, +0.03% were steady against the dollar.