Mumbai: Led by gains in financials and auto stocks and hopes of an economic stimulus, benchmark equity indices snapped their two-session losing streak on Wednesday to end the volatile session on a firm footing. However, the underlying sentiment remained bleak in light of the coronavirus pandemic, extended shutdown and worrying earnings outlook.
"Auto and NBFC sectors, indicators of where the real economy is headed, attracted investors' buying interest thus resulting in a strong volume-based activity on hopes of a big announcement by the government," said Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities.
Two-third of 30 Sensex stocks closed higher. Private lenders HDFC Bank and ICICI Bank rose 3.80 per cent and 3.79 per cent respectively while consumer finance company Bajaj Finance climbed 5.19 per cent. Auto major Mahindra & Mahindra rose 5.27 per cent and was the top Sensex gainer.
Key facts:
- The 30-share Sensex reversed early losses to close 0.74 per cent or 232 points higher at 31,686 while the 50-share Nifty gained 0.71 per cent or 65 points to settle at 9,271.
- European shares opened little changed as a batch of mixed earnings reports and simmering US-China tensions added to doubts about a swift economic recovery even as many countries eased lockdown measures, a Reuters report said. The pan-European STOXX 600 index was flat.
- The global sentiment remained edgy as US President Donald Trump once again urged China to be transparent about the origins of the novel coronavirus outbreak.
- The deadly novel coronavirus has infected a total of 49,391 people in India. The death toll from the virus zoomed to 126 on Tuesday. Maharashtra reported the highest number of Covid-19 death on Tuesday, taking total number of deaths in the country to 1,694.
Key market statistics
- Even as frontline indices closed higher, losers marginally outnumbered gainers on the BSE, indicating underlying bearishness.
- Volatility index or India Vix fell for the second straight session and dropped 5.33 per cent to 41.28.
- BSE Midcap and BSE Smallcap indices rose 0.78 per cent and 0.49 per cent, respectively.
- BSE Finance index was the best sectoral gainer as it advanced 2.45 per cent. JM Financial was the top performer and advanced 10 per cent ahead of its quarterly earnings announcement. M&M Financial Services followed suit with a 7.39 per cent rise.
- BSE Telecom index rose 2.30 per cent. Telecom operators Bharti Airtel and Vodafone Idea were the biggest gainers and advanced 3.45 per cent and 3.38 per cent, respectively.
- BSE FMCG index, on the other hand, was the biggest loser and shed nearly 2 per cent. Cigarettes-to-hotels firm ITC shed the most after reports that the government was looking to sell the entire stake in the firm via bulk deal. It dropped 5.81 per cent.
- IT company NIIT Technologies surged 19.53 per cent after it said its March quarter net profit rose 7.7 per cent to Rs 113.6 crore.
- India’s largest port operator Adani Ports and Special Economic Zone climbed 3.12 per cent despite reporting a 74 per cent fall in net profit in the last quarter of fiscal year 2020 due to a large foreign exchange loss.
What are the experts saying?
What to watch out for?
- Global markets will be closely tracked for cues over the US-China spat.
- The extent of the spread of coronavirus infections in the country will be closely monitored.
- The second stimulus package from the government to help companies tide over the coronavirus crisis is keenly awaited.