Coronavirus vaccine hopes, EU recovery deal help indices surge

The benchmark indices on Tuesday rose on hopes of a Covid-19 vaccine and after European Union leaders agreed on €1.8-trillion budget and recovery package.

A positive start to the results season also boosted sentiment. Rallying for the fifth day, the Sensex closed at 37,930, up 511 points, or 1.4 per cent. The Nifty rallied 140 points, or 1.3 per cent, to end at 11,162. Both indices closed at their highest levels since March 5—just before the sharp Covid-19 triggered sell-off. In the past two months, the market has surged more than 25 per cent.

The latest surge was underpinned by news reports suggesting that vaccines against Covid-19 might be ready by the end of the year.