Sensex Closes 499 Points Higher, Nifty Reclaims 10,400 Led By Financial Stocks

Benchmark indices Sensex and Nifty are still down around 15 per cent for the year, having already suffered earlier in the year from a weak economy.

Sensex Closes 499 Points Higher, Nifty Reclaims 10,400 Led By Financial Stocks

Gains in banking, financial services and select energy stocks pushed the markets higher

Domestic stock markets jumped more than 1 per cent as they entered the second half of the year, helped by heavyweight financials, although worries over the impact on the economy from a persistent surge in coronavirus cases tempered investor sentiment. The S&P BSE Sensex index soared as much as 1.54 per cent - or 538.38 points - to touch 35,454.18 during the session, whereas the broader NSE Nifty 50 benchmark climbed as much as 1.41 per cent to 10,446.90. Gains in banking, financial services and select energy stocks pushed the markets higher, however losses in pharmaceutical shares limited the upside.

The Sensex ended 498.65 points - or 1.43 per cent - higher at 35,414.45, and the Nifty settled at 10,417.55, up 115.45 points - or 1.12 per cent - from its previous close.

In the Nifty basket of 50 shares, Axis bank, UPL, Bajaj Finserv, HDFC and ITC, closing between 4.65 per cent and 6.34 per cent higher, were the top gainers.

On the other hand, NTPC, Nestle, Larsen & Toubro, Shree Cement and Cipla, ending between 1.88 per cent and 2.14 per cent lower, were the top Nifty losers.

A private survey showed that the country's manufacturing activity contracted for a third straight month in June, but at a much shallower pace, suggesting the worst may be over for the pandemic-hit economy, at least for now.

The stock market has recovered sharply from multi-year lows hit in mid-March on COVID-19 fears, but the benchmark indies are still down around 15 per cent for the year, having already suffered earlier in the year from a weak economy.

Meanwhile, broader Asian stocks struggled for traction as better-than-expected Chinese factory activity could not soothe worries that a surge in coronavirus cases in the United States could hinder an economic recovery.

Bharti Airtel ended 0.03 per cent higher at Rs 559.80 apiece on the BSE, having jumped as much as 2.56 per cent earlier, after US-based Carlyle said it will buy a 25 per cent stake in the telecom company's data centre arm for $235 million.