Stocks see best day in a month, rally over 1%

BENGALURU: Indian shares closed sharply higher on Wednesday as financial and auto stocks surged following a set of strong quarterly results, with motorbike maker TVS Motor clocking its best session in more than one-and-a-half years.

The NSE Nifty 50 index jumped 1.44% to 14,864.55, while the benchmark S&P BSE Sensex climbed 1.61% to 49,733.84. Both indexes saw their best day since March 30 and marked three straight sessions of gains, following a pandemic-led slump in recent weeks.

Even as domestic coronavirus cases surged and deaths crossed a grim milestone of 200,000, investors have turned their focus to strong Marchquarter results as analysts believe companies may not take a hit like they did last year.

“We expect markets to look beyond the short term on cases peaking, vaccine approvals/ expansion,” BofA research analyst Amish Shah said in a note.

Shadow bank Bajaj Finance closed 8.6% higher following a jump in its March-quarter profit. The company was the top percentage gainer on the Nifty 50. Bajaj Finserv jumped 3.9% after its results.

The Nifty Bank index advanced 3%, with top lender HDFC Bank rising 2.7%.

TVS Motor Co. shares added 14% after the company’s March-quarter profit nearly tripled and beat estimates. The Nifty Auto index was up 1.7%.

“Superior fourth quarter results and vaccine optimism buoyed domestic markets to trade on a positive footing for the third consecutive day ahead of the US Federal Reserve interest rate decision,” said Vinod Nair, head of research at Geojit Financial Services.

India’s deadly battle with the coronavirus has overwhelmed its healthcare system and forced several states to enter a lockdown.

Maharashtra, home to the financial capital Mumbai, said on Wednesday it may extend its lockdown till mid-May.