Markets surged on Tuesday even as India's number of Coronavirus (COVID-19) cases soared to 4421. While both indices - Sensex and Nifty were seeing a tumble amid the spread of the pandemic, Sensex was up 2,476.26 points, ending at 30067.21 and Nifty was up 708.40 points, ending at 8792.20, according to PTI. Market reports state that while 1813 shares have gained, 535 shares declined and 189 shares remained unchanged. The rupee too gained by 55 paise at 75.63 per dollar on Tuesday, as buying was reportedly seen in the domestic equity market.
Experts state that the major sectors which gained momentum on Tuesday were healthcare, IT, realty, Bankex, telecom, and automobile, due to rally in trading in a market which was going through a slump. Moreover, with the slump in European and US markets- heavily hit by Coronavirus, Asian markets have reportedly rallied strong. Another factor which has helped the markets gain is the lifting of restrictions on the export of 24 pharmaceutical ingredients and medicines made in India, kicking off exports from the country.
Reports state that these 26 active pharmaceutical ingredients accounted for 10% of all Indian pharmaceutical exports. Experts have also claimed that as India swiftly responded to the delay in foreign investments in particular sectors, Morgan Stanley expects $1.3 billion in passive inflows into the Indian equities spread across a bunch of stock, according to reports. Reports state that with the Indian market falling by 30% from its recent high, sector leaders with relatively stronger balance sheets have been preferred by buyers.
The fear of the virus has disrupted business supply chains, while the number of positive cases has hit 13,58,943 cases and 75,896 deaths. Moody’s have estimated that coronavirus has increased the risk of a global recession as advanced countries United States, Japan, Germany, Italy, France, Britain, and Korea battle the virus, but the UN has claimed that India and China may be spared. Analysts have said that as China is the largest supplier of raw materials and manufacturing hub for different industries - core industries like automobiles, metal and pharmaceuticals' trade were brought to a standstill due to China closing off its borders, but now is seeing action as China picks up manufacturing. Currently, US which is the epicenter of the pandemic has extended its social distancing restrictions till April 30.