Nifty extends gains for 4th straight day, Sensex snaps 3-day gaining streak; what kept investors edgy

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Updated: March 27, 2020 4:46:52 PM

Reserve Bank of India announced a big monetary bazooka including 75 bps repo rate cut along with massive liquidity injection (first CRR cut In 7 years!) and relaxation in various measures

Sensex, NiftyFor the week, the Sensex has hugely underperformed global indices like Dow Jones (up 17% till Thursday) and Shanghai Composite (up 4%)

Pausing three-day gaining streak, headline indices Sensex and Nifty gave up gains to settle lower in Friday’s volatile session. S&P BSE Sensex ended 131 points or 0.44 per cent down at 29,815, while the broader Nifty 50 index settled at 8,660, up 18 points or 0.22 per cent. “The BSE-30 Index is seen recouping all most all of the losses that it had suffered in the initial trading session of the ongoing week. The bounce back in Sensex was led by rebound in global markets and launch of stimulus package by the US as well as the Indian government. Yet, for the week, the Sensex has hugely underperformed global indices like Dow Jones (up 17% till Thursday) and Shanghai Composite (up 4%),” Sanjeev Zarbade, VP PCG Research, Kotak Securities said.

Sensex surpassed 31,000 level in opening deals- In the opening deals, the 30-share index index reclaimed 31,000-level and the broader Nifty 50 index went past the crucial 9,000-mark. However, post RBI’s emergency repo rate cut announcement indices fell over 1,700 points from day’s high levels.

RBI emergency repo rate cut- RBI announced to cut repo rate by 75 bps to 4.4 per cent while reverse repo rate by 90 bps to 4 per cent. “Reserve Bank of India announced a big monetary bazooka including 75 bps repo rate cut along with massive liquidity injection (first CRR cut In 7 years!) and relaxation in various measures to address the existing and potential financial stress in the economy. These announcement will be taken positively by the equity market, however, its movements will continue to be dictated by the evolving situation on COVID-19 crisis and its implications on the economy and corporate profitability. As a house, our focus continues to remain on the bottom up stock picking,” Navneet Munot, ED & CIO, SBI Mutual Fund said.

Hero MotoCorp top Sensex loser- As many as 16 stocks out of 30 Sensex stocks finished trade in red today with Hero MotoCorp down 8 per cent, followed by Bajaj Finance, Bharti Airtel and IndusInd Bank. On the flip side, Axis Bank was the top Sensex gainer, up over 5.5 per cent. ITC, NTPC, M&M and TCS were among the top gainers on Sensex. 

Nifty Bank ends higher- Most of the sectoral indices settled in a positive territory. Nifty Bank index gained 1.81 per cent led by Bandhan Bank, Federal Bank and Axis Bank. While Nifty Auto index settled 2.42 per cent lower dragged by losses in Hero MotoCorp, Bharat Forge and TVS Motor.

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