The Sensex has surged nearly 1000 points in trade today, led by a strong rally in global stocks. Here are 4 reasons why the Sensex has surged almost 1000 points in trade.
1. Treatment for Covid-19
Pharma major, Gilead Sciences has said that early results of coronavirus drug trial show improvement with shorter remdesivir treatment. Remdesivir is a product of Gilead Sciences and is widely considered to be a front-runner among the investigational therapies being tested as treatments for COVID-19.
"As part of the FDA's commitment to expediting the development and availability of potential COVID-19 treatments, the agency has been engaged in discussions with Gilead Sciences regarding making remdesivir available to patients as quickly as possible, as appropriate," FDA spokesman Michael Felberbaum said in statement.
2. Opening-up of the lockdown
Even as Covid-19 infections in India crossed the 33,000 mark, investors remained hopeful of opening-up of the economy after a lockdown.
3. Hopes raised for a stimulus
Markets were also looking at the possibility of an economic stimulus measures to be announced sometime later this week. The stimulus package is likely to be targeted at the most impacted, MSME sector.
4. Short covering ahead of expiry
Today is the last day for expiry of the April F&O session. There could be some short covering rally on account of which the markets have surged.