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Sensex, Nifty climb 4-month peak on vaccine hopes, rupee surges

By Reuters

  • 02 Jul 2020
Sensex, Nifty climb 4-month peak on vaccine hopes, rupee surges
Credit: Reuters

Indian shares ended at a near four-month high on Thursday as positive developments in a coronavirus vaccine trial soothed worries about rising number of cases at home, while the rupee soared against the US dollar.

The NSE Nifty 50 index ended 1.17% higher at 10,551.7, while the benchmark S&P BSE Sensex was up 1.21% at 35,843.7, the best closing levels for the indexes since March 6. The rupee ended at 75.01 against the dollar, its best closing level since March 27.

The number of COVID-19 cases in India crossed 600,000, with the death toll touching 17,834, days after the government allowed more economic activities to resume.

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Global stock markets were upbeat after a COVID-19 vaccine from Pfizer and Germany's BioNTech was found to be well tolerated in early-stage human trials, and ahead of data that is expected to show a record rebound in US jobs figures.

However, Mumbai's benchmark stock indexes are down around 13% for the year so far, even after a sharp recovery from March's multi-year lows.

Heavily hammered automakers stocks led the rally, with the Nifty Auto Index seeing its best day since June 12.

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Mahindra and Mahindra Ltd was the biggest percentage gainer on the Nifty, closing 6.1% firmer at its best close since mid-Feb. Two-wheeler maker Hero MotoCorp Ltd gained 4.9% to its highest in nearly eight months.

IT stocks gained ground following reports that US Democratic presidential candidate Joe Biden would lift the temporary suspension of H-1B visas, used by Indian IT professionals, if he wins the November elections.

IT giants Tata Consultancy Services Ltd and Infosys Ltd jumped more than 3% each, pushing the Nifty IT Index 2.7% higher.

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Axis Bank Ltd's stock closed 2.3% lower after the private sector lender approved raising Rs 15,000 crore ($2.00 billion) through issue of shares.

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