MARKET WRAP: Sensex settles 606 pts higher; metals, financial stocks jump

The domestic equity market settled in the positive territory for the third straight day on Wednesday, supported by buying in financial, IT, auto, and metal stocks.

The S&P BSE Sensex rallied 606 points or nearly 2 per cent to settle at 32,720. HDFC emerged as the biggest gainer on the index - up 7 per cent. HDFC Bank, HCL Tech, and Mahindra & Mahindra (M&M) were next on the list. On the flip side, Axis Bank (down 3.6 per cent) settled as the top loser on the index.

NSE's benchmark index Nifty settled at 9,553, up 172 points or 1.84 per cent. Volatility index India VIX continued to slide and ended 4.3 per cent lower at 33.83 levels. 

Among sectoral indices, Nifty Metal index was the top gainer - up 3.74 per cent at 1,724 levels, followed by Nifty Financial Service index (up 3.43 per cent). Nifty IT ended over 2 per cent higher at 13,425 levels. 

In the broader market, the S&P BSE MidCap index ended at 11,840.20, up 1 per cent while the S&P BSE SmallCap index settled at 10,975, up over 1 per cent. 

Buzzing stocks

Shares of Housing Development Finance Corporation (HDFC) traded higher for the third straight day on the BSE as investors indulged in some value buying after the price erosion during the coronavirus-induced sell-off. It settled at Rs 1,837 apiece on the BSE, up over 7 per cent. READ MORE 

Ruchi Soya Industries has entered the list of top 200 most-valued companies by market capitalisation (market-cap) following a sharp run-up in its share price. At the close, the company's m-cap stood at Rs 11,558.51 crore on the BSE. The stock ended at Rs 390.70 apiece. READ MORE
 

Axis Bank ended over 4 per cent lower at Rs 438.85 apiece on the BSE after the bank made massive Rs 7,730 crore provisions in the March quarter of FY20 (Q4FY20), of which Rs 3,000 crore worth provisions were due to coronavirus (Covid-19)-induced uncertainty. This pushed the bank in the red zone, with the lender posting a surprise Rs 1,388-crore net loss in the recently concluded quarter. READ MORE

Global Markets

European shares struggled to maintain early gains on Wednesday, as a slide in defensive stocks countered upbeat forecasts from German automakers and sensor specialist AMS as well as a bounce in oil prices. 

In Asia, China shares settled higher after the country’s biggest listed banks posted solid first-quarter profits, and as investors saw signs of lockdown easing, but lingering worries over the coronavirus pandemic capped gains. At the close, the Shanghai Composite index was up 0.44 per cent at 2,822.44. The blue-chip CSI300 index ended 0.46 per cent higher.

In commodities, oil prices gained after US stockpiles rose less than expected and gasoline stocks fell and buoyed by hopes demand will improve as some European countries and US cities moved to ease coronavirus lockdowns.

June Brent crude futures were up 2.30 per cent, or 47 cents, to $20.93 a barrel at the time of writing of this report, after hitting $21.60 a barrel. The more active July contract added 22 cents, or 0.97 per cent, to $22.96 a barrel.

US West Texas Intermediate (WTI) crude futures jumped 12.56 per cent or $1.55 to $13.89 after a 27 per cent plunge over the first two days of this week.

(With inputs from Reuters)