Markets rally on govt’s fiscal stimulus boost

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Published: May 14, 2020 4:50:30 AM

According to the provisional data on the exchanges, foreign portfolio investors (FPIs) sold equities worth $37.7 million whereas, domestic institutional investors bought equities worth $30.8 million.

The benchmark Sensex was up 637.49 points or 2.03% to close at 32,008.61.The benchmark Sensex was up 637.49 points or 2.03% to close at 32,008.61.

Bucking the global trend, Indian equities rallied on Wednesday, following the announcement of the Rs 20-lakh-crore fiscal stimulus package. The benchmark Sensex was up 637.49 points or 2.03% to close at 32,008.61. The broader Nifty50 was up 187 points or 2.03% to close at 9,383.55.

The benchmarks lost some of their gains after the first hour of the trading session. According to market experts, the equity markets could witness some correction on Thursday. UR Bhat, director, Dalton Capital Advisors (India), said the measures such as the Rs 3 lakh crore of fully guaranteed loans, as also some equity support for MSMEs, partial credit guarantee for NBFCs, as also liquidity support, among other measures, are well targeted. “Since the measures were largely directed towards MSMEs who are mostly suppliers to the larger companies and they are themselves largely unlisted, the market could see some correction on Thursday. However, there are a lot more measures to come and hence, the market could keep the hopes alive,” said Bhat.

Banking and financial stocks were among the top ten gainers on the Nifty on Wednesday. The Nifty Bank gained 4.09% during the day’s trading session and Nifty PSU Bank was up 6.1%. The biggest gainers on Nifty Bank were Bandhan Bank, IDFC First Bank, Bank of Baroda, Punjab National Bank, and Axis Bank up 8.5%, 8.17%, 8.16%, 7.3% and 7%, respectively.

Siddhartha Khemka, head, retail research, Motilal Oswal Financial Services, said, “Markets would now await the details of the balance package which would be announced over the next few days. The important thing to look out will be whether the package is able to revive the demand and any structural reforms are announced.”

According to the provisional data on the exchanges, foreign portfolio investors (FPIs) sold equities worth $37.7 million whereas, domestic institutional investors bought equities worth $30.8 million. The F&O segment volumes on the NSE stood at Rs 11.8 lakh crore against the six-month average of Rs 14.21 lakh crore. Cash market volumes were Rs 57,532.9 crore against the six-month average of Rs 40,898 crore.

The biggest gainers on the Nifty were Zee Entertainment, Axis Bank, Ultratech Cement, L&T, as well as Adani Ports and SEZ, up 7.7%, 7%, 6.4%, 6.28% and 5.9%. On the other hand, the biggest losers were Nestle India, Sun Pharmaceuticals, Bharti Airtel, Britannia Industries and TCS down 5.2%, 2.16%, 1.04%, 0.78% and 0.26%, respectively. Broader indices outperformed the benchmarks with Nifty Midcap and Nifty Smallcap up by 2.29% and 2.50% respectively. Sectorally, Nifty PSU Bank emerged as the biggest gainer followed by Nifty Bank, Nifty Private Bank, Nifty Realty and Nifty Financial Services. The only sectoral losers were Nifty Pharma and Nifty FMCG.

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