Sensex rises 700 points on vaccine hopes; Nifty tops 10,750

NEW DELHI: Domestic equity indices gained in morning trade on Wednesday, in line with Asian peers, on optimism over vaccine trials and more stimulus from the governments.

Risk appetite was boosted after Moderna Inc's experimental vaccine for coronavirus showed it was safe and provoked immune responses in all 45 healthy volunteers in an ongoing early-stage study.

At 10.40 am, BSE flagship Sensex was up 699 points or 1.93 per cent to 36,732 while NSE benchmark Nifty gained 180 points or 1.70 per cent to 10,787. Metal, banks and media stocks were in demand while telcos witnessed some selling pressure.

In the 30-share pack Sensex, Tech Mahindra was the biggest gainer, up 3.13 per cent at Rs 6.17, followed by Infosys, HCL Tech, Axis Bank, TCS and Tata Steel that gained in the range of 1-3 per cent.

Airtel was the biggest loser in the pack, down 1.18 per cent followed by Kotak Mahindra Bank and ITC that were other members of the losers club, falling up to 2 per cent.

Broader market indices were playing catchup with their headline peers as Nifty Smallcap gained 0.55 per cent while Nifty Midcap added 0.44 per cent. Broadest index on NSE, Nifty 500 was up 0.76 per cent.

Baring Nifty Realty that slipped 0.08 per cent, all sectoral indices on NSE gained. Nifty IT was the biggest gainer, jumping 3 per cent followed by Nifty Metal and Nifty Media that added over a per cent.

Globally, Asian shares jumped as optimism about a coronavirus vaccine bolstered risk appetite while the euro rose to a four-month top on the prospect of stimulus ahead of a crucial EU summit.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 1.2 per cent, edging closer to a recent five-month peak.

Japan's Nikkei added 1.5 per cent to the highest since June 10 while Australia's benchmark index was up 1 per cent. Chinese shares gained modestly with the blue-chip CSI300 index ticking up 0.3 per cent.

E-mini futures for the S&P 500 rose 0.8 per cent.