What was the reason for the Sensex rallying nearly 900 points on 01 June?

After 3 positive days, Nifty and the Sensex had another robust day with the Sensex gaining close to 879 points on 01 June. In all, the Sensex has now gained 2700 points in 4 days flat. The rally was driven by optimism around reopening of the economy leading to a boost to investor sentiments. While restrictions continued in containment zones, the unlock process began in the non-containment zones. Even in containment zones, more business activities will be allowed and that is seen as a positive. In addition, the good tidings on the monsoon and expectations of a bumper Kharif crop also helped matters. Among the top gainers, Reliance was up 3.9%, HDFC Bank was up 3.4% while heavyweight Bajaj Finance was the leader with 10.46% appreciation. Analysts have cautioned that profit booking cannot be ruled out at higher levels. Clearly, markets are focusing more on the optimistic side and anticipating a favorable scenario.