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    Rallies in HDFC twins, Infosys send Sensex 1,411 points higher; Nifty reclaims 8,600

    Synopsis

    The market capitalisation of the BSE-listed companies rose by Rs 4.45 lakh crore.

    Bull-1---ShutterShutterstock.com
    Lenders HDFC Bank and HDFC climbed 6.76 per cent and 6.47 per cent, respectively. Telecom major Bharti Airtel rose 11.23 per cent.
    Mumbai: Benchmark equity indices surged for the third session in a row on Thursday, mainly due to short covering-led rally on the day of March F&O expiry. Investors were also encouraged by Finance Minister Nirmala Sitharaman’s relief package, which is expected to provide support to rural and semi-rural economy amid the lockdown in the country.

    The 30-share Sensex jumped 4.94 per cent or 1,411 points to close at 29,947, while the 50-share Nifty added 3.89 per cent or 324 points to end at 8,642.

    The market capitalisation of the BSE-listed companies rose by Rs 4.45 lakh crore.

    Market sentiments were also helped by the passage of a $2 trillion stimulus package in the US to mitigate the impact of coronavirus on the world's largest economy.

    Value-buying opportunities in the banking stocks also helped lift the market higher.

    Markets at a glance
    After a long time, the market breadth was fairly positive with around two shares advancing for every share than declined on the BSE.

    NSE’s India VIX fell for the third straight session as it dropped 8.40 per cent to 71.10, indicating that the wild swings in the market may gradually calm down.

    The broader marker underperformed benchmark with BSE Midcap and BSE SmallCap indices rising 3.49 per cent and 3.73 per cent, respectively.

    BSE Telecom was the top sectoral performer with a 10.04 per cent gain. OnMobile and Bharti Airtel were the top gainers as they advanced 8.72 per cent and 8.13 per cent, respectively.

    BSE Capital Goods index followed next with a 7.24 per cent rise. Bharat Forge and Laxmi Machine Works were the lead gainers as they rose 12.59 per cent and 11.45 per cent, respectively.

    A total of 26 stocks in the 30-pack BSE Sensex ended in the green.

    Financials and IT major Infosys contributed the most to the benchmark’s gains. "Short covering mainly supported the banking and financial sector on Thursday, said Nirav Chheda, Technical Analyst at Nirmal Bang Securities.

    Private lender IndusInd Bank jumped 45.07 per cent – the most since its IPO - as it witnessed a sharp rebound on the back of short-covering on the counter.

    Lenders HDFC Bank and HDFC climbed 6.76 per cent and 6.47 per cent, respectively. Telecom major Bharti Airtel rose 11.23 per cent.

    Energy-to-telecom major Reliance Industries (RIL) bucked the trend and fell 0.60 per cent as traders locked in gains after the stock logged its best gains in over a decade in the previous session.

    Analysts’ views
    "The key takeaway is that it will provide a solid support to rural & semi-rural economy due to high amount of benefit in term of food, cash in hand and job safety. Regarding the market it will provide safety to defensive stocks like the staple industries but does not provide any relief to corporates like banks, hospitality and others. It seems that the majority of the benefits announced is factored in the market given more than 15% bounce from the recent low. The recovery of the market will continue if strict lockdown system is implemented in the developed markets and number of new virus cases reduces,”
    - Vinod Nair, head of research at Geojit Financial Services.

    “This three consecutive gains was not visible during sharp downtrend of the last one month. This is positive indication. Hence, the recent swing (Nifty) low of 7,511 (March 24) could now be considered as a near term bottom reversal in the market. Hence, any decline from here is expected to form a new higher bottom around 8,200-8,000 levels. Any long positions need to place a stoploss of 7500 levels."
    - Nagaraj Shetti - technical analyst, HDFC securities

    Global markets
    World share markets fell on Thursday as nerves over jobs data likely to lay bare the economic carnage from the coronavirus pandemic outweighed a $2 trillion US stimulus package, Reuters reported.

    MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.7 per cent but regional performances varied. The Nikkei snapped three days of gains with a 4 per cent drop.

    Europe’s broad Euro STOXX 600 fell 1.6 per cent, with bourses in Frankfurt, London and Paris all down around 2 per cent as a two-day rally faltered.



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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