Domestic stocks remained lackluster throughout the day as investors priced in the possibility of a staggered relaxation of the nationwide lockdown starting today
A crash in crude oil prices and weak global cues dented the investor sentiment on Monday. domestic equity market benchmark BSE Sensex ended just 60 points or 0.19 per cent higher at 31,648, while the broader Nifty 50 index ended flat with a negative bias at 9,266. The gains in Sensex were supported by PSU Banks and IT stocks. HDFC Bank, Infosys, HDFC, RIL and Sun Pharma were among the top index contributors in today’s seesaw trade. “Today, Nifty opened gap-up but failed to hold gains due to mix cues from global markets and worries over coronavirus. Throughout the day, the market remained largely within the range of 9230 to 9340. Market Breadth was in favor of bulls. For every loser, there were more than a couple of gainers. Small-cap and Mid-cap outperformed Nifty on a consistent basis since last week,” Vishal Wagh, Research Head, Bonanza Portfolio Ltd, said.
Sun Pharma share price gained 4%: Out of 30 Sensex stocks, 9 shares settled in green with Sun Pharma as the top gainer with a growth of nearly 4 per cent, followed by HDFC Bank, Infosys, NTPC and HCL Tech. On the flip side, Axis Bank was the top laggard with a decline of over 5.5 per cent. ITC, Maruti Suzuki, ICICI Bank and IndusInd Bank were among other losers on the pack.
Nifty PSU Banks index rallied: Most of the sectoral indices finished trade in negative territory. The Nifty Metal index was down 3.20 per cent dragged by Hindalco Industries, JSW Steel, NMDC and Vedanta. On the other hand, Nifty PSU Bank index advanced 4.23 per cent led by gains in Central Bank, UCO Bank, J&K Bank and Indian Bank.
Staggered relaxation of lockdown: The government has allowed select factories and construction work to resume work from today, April 20, 2020, to revive the economy. “Domestic stocks remained lackluster throughout the day as investors priced in the possibility of a staggered relaxation of the nationwide lockdown starting today,” Paras Bothra, President of Equity Research, Ashika Stock Broking, said.
Technical observation: Even after opening with gains, Nifty 50 closed the session slightly negative. “After showing a fine upside bounce on Friday, Nifty showed range bound action on Monday and closed the day on a slightly negative note. A negative candle was formed on Monday after higher opening, technically this pattern indicates minor profit booking from the highs,” technical analyst Nagaraj Shetti, HDFC Securities, said