Sensex Rose After Pfizer Announced COVID-19 Vaccine

By Angel Broking | Published on 11th November 2020 | 69

SENSEX Raced After Pfizer Announced COVID-19 Vaccine

The SENSEX seems to be on a festive mood over the new COVID-19 vaccine announcement. Both SENSEX and NIFTY clocked gains after American drug manufacturer Pfizer announced the much-awaited COVID-19 vaccine. The share price of the Indian arm of Pfizer gained 19.46 percent in SENSEX during intraday before closing at 2.66 percent in the green. 

It is a classic example of how global – eco-political news swings the sentiments of the market. This year the pharma sector gained significantly in the market since the outbreak of the pandemic brought them into focus. On Tuesday, both indices, NIFTY and SENSEX gained from the news of Pfizer’s vaccine. 

Over the last few months pharma companies worldwide are working relentlessly to discover the vaccine for the Novel Corona Virus that has crippled global economy and forced many countries to implement lockdown. 

On Monday, Pfizer and BioNtech announced that the vaccine they were working on shown high efficacy in preventing COVID-19 in 90 percent cases. The news was welcomed by the market. Although there is still time the vaccine comes to the market, but the positive news was enough to give the bulls a field day in the market. 

SENSEX Increased due to Pfizer’s vaccine 

Domestic benchmark indices, SENSEX and NIFTY touched record high following the news of vaccine.  S&P BSE SENSEX closed at 43,277 points, registering a gain of 680.22 points in a single day, whereas NIFTY 50 closed over 12,600 marks, gained 1.03 percent. BSE 30 share index crossed 43,000 marks for the first time in history after recording high for the second day straight. 

Market experts think that the reaction is normal. There were several other news of vaccine development, but it’s coming from a company like Pfizer with a promise of such high efficacy added to market positivity.  SENSEX increase due to Pfizer’s vaccine is the natural outcome. 

The positivity also spilled over into other sectors. Finance and IT both gained during the intraday trading. Bajaj Finance and IndusInd Bank were the top gainers, surged 8 and 7 percent respectively. 

Among the other gainers of the day were domestic airline IndiGo and hotel companies Indian Hotel and Lemon Tree. Aviation, travel, and hotel sectors are some of the worst-hit sectors from the COVID-19 outbreak. Possibility of a new vaccine encouraged investors to bet for these companies stocks once again. 

Conclusion 

BSE SENSEX increased due to Pfizer’s vaccine announcement. Indices closed high on both Monday and Tuesday is undoubtedly positive news for the market which is gearing up for Diwali trading on November 14.