Sensex zooms over 1,400 pts on PM Modi’s ₹20 lakh cr. economic booster

After touching a high of 32,845.48, the 30-share index pared some early gains to trade 818.68 points or 2.61% higher at 32,189.80. Similarly, NSE Nifty soared 213.50 points, or 2.32%, to 9,410.05.

Equity benchmark Sensex rallied over 1,400 points in opening session on May 13 as Prime Minister Narendra Modi’s ₹20 lakh crore stimulus package to revive the coronavirus-hit economy boosted domestic investor sentiment.

After touching a high of 32,845.48, the 30-share index pared some early gains to trade 818.68 points or 2.61% higher at 32,189.80.

Similarly, NSE Nifty soared 213.50 points, or 2.32%, to 9,410.05.

ICICI Bank was the top gainer in the Sensex pack, surging around 7%, followed by L&T, Axis Bank, Bajaj Finance, Hero MotoCorp, M&M, UltraTech Cement and Maruti.

On the other hand, Nestle India, Bharti Airtel, Sun Pharma and Reliance Industries were trading in the red.

In the previous session, the BSE barometer settled 190.10 points or 0.60% lower at 31,371.12, and broader Nifty declined 42.65 points, or 0.46%, to 9,196.55.

Foreign portfolio investors offloaded equities worth ₹1,662.03 crore in the capital market on May 12, provisional exchange data showed.

According to analysts, domestic investors cheered the government’s massive stimulus package to revive the pandemic-stricken economy.

The Prime Minister on May 12 announced massive new financial incentives on top of the previously announced packages for a combined stimulus of ₹20 lakh crore.

He said the package will be around 10% of the GDP and “will play an important role in the ‘Atmanirbhar Bharat Abhiyan’” (self-reliant India campaign). The special economic package will have emphasis on land, labour, liquidity and laws, and will be for “our labourers, farmers, honest tax payers, MSMEs and cottage industry”, Mr. Modi said.

Meanwhile, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading with losses as fears of a second wave of coronavirus infections gripped global markets.

On Wall Street, stock exchanges settled on a negative note.

International oil benchmark Brent crude futures were trading 1.53% lower at $29.52 per barrel.

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