Mumbai: Benchmark equity index
Sensex rose for the second straight session on Thursday, taking cues from firm Asian equities, and as hopes of a stimulus package by the government ran high. The underlying sentiment, however, remained bleak in light of the
coronavirus pandemic and subsequent shutdown.
Key facts
- Around Rs 1.2 lakh crore was added to the market capitalization of the stocks listed on the BSE. However, for the year to date, such market capitalization has witnessed an erosion of Rs 31.8 lakh crore.
- Global markets traded mixed. Asian shares rose, riding on the recovery in the oil prices. MSCI’s broadest index of Asia Pacific shares outside of Japan rebounded from two-week lows to be up 0.4 per cent.
- Meanwhile, European stock markets erased meagre early gains as investors braced for worsening business activity data with the coronavirus outbreak battering the global economy, while Unilever slumped after pulling its full-year forecast, Reuters reported. The pan-European STOXX 600 index edged down 0.1 per cent.
- Globally, the total number of coronavirus cases has crossed 26 lakh while the death toll has gone above 1.8 lakh.
- In India, the total number of coronavirus cases in India has gone up to 21,393, while the death toll from Covid-19 has risen to 681 .
Key market statistics
- Market breadth leaned towards the gainers, with three shares advancing for every share that declined on the BSE.
- Broader market too ended in the green. BSE midcap and smallcap indices climbed 0.90 per cent and 1.35 per cent. respectively.
- BSE IT index was the top sectoral performer with Aptech and NIIT Technologies top gainers, as they jumped 14.42 per cent and 8.51 per cent, respectively.
- BSE Bankex rose 3.39 per cent with private lenders Kotak Mahindra Bank and ICICI Bank advancing 8.59 per cent and 4.97 per cent, respectively.
- IT stocks and financials contributed the most to Sensex’s gains. A total of 16 stocks in the 30-pack index shut shop on a firm note.
- IT major Infosys and TCS rose 5.67 per cent and 5.97 per cent, respectively.
- Jewellery maker Titan, on the other hand, was the top loser and shed 4.18 per cent.
- Zee Entertainment rose 4.06 per cent after a bulk deal in the counter on Wednesday. Florida Retirement System bought 51,09,188 shares of Zee Entertainment Enterprises at Rs 141.29 a share.
What next from here?
- “Without a fiscal stimulus, it is very hard to see how the economy will register even a 0 per cent growth this year. So, the Reserve Bank of India (RBI) has done a good job but now all eyes are on the government to see what kind of big bang fiscal package they are able to get for industry and the workers,” said Mhir Vora, CIO, Max Life Insurance.
- “The rising cases of infections are a worry and markets are hoping that it will peak soon. The sustainability of this rally will depend on government measures to boost the economy and support the industries, once we emerge out of the lockdown,” said Vinod Nair, Head of Research at Geojit Financial Services
What to watch out for?
- Global markets and development on crude oil prices will be closely monitored.
- The quarterly corporate earnings announcement could provide stock-specific cues and an insight into early damage caused by Covid-19 and subsequent lockdown to businesses.
- The much-awaited announcement of the second round of stimulus measures from the government is keenly watched out for. On Friday, Finance Minister Nirmala Sitharaman reiterated India would soon announce fresh relief measures and economic stimulus but did not provide a timeline for it.