Domestic equity market closed in a positive territory buoyed by firm global cues and Rs 50,000 crore liquidity facility for mutual funds. This announcement by RBI led to gains in financial and banking stocks. BSE Sensex advanced 415 points or 1.33 per cent to 31,743, while the broader Nifty 50 index soared 128 points or 1.40 per cent to end the session at 9282. Nifty Bank index climbed 495 points or 2.52 per cent, while Nifty Private Bank advanced 315 points or 3 per cent. Among individual stocks on BSE Sensex, ICICI Bank, Kotak Mahindra Bank, Axis Bank and Reliance Industries (RIL) were the top contributors to the index today. “Market breadth was in favour of the bulls. For every loser, there were a couple of gainers. All sectors participated in today’s rally which was led by Private Banks and IT stocks. India VIX contracted further by more than 2.8%, remained just above 38 levels,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd, said.
Sensex gained 24% from March lows: BSE Sensex touched the crucial 32,000-mark in the intraday trade. “Markets have sufficiently pulled back and are trading at fair valuations, and pricing in some additional easing or incentives by the government,” Narendra Solanki, Head Fundamental Research, Anand Rathi Shares and Stock Brokers, told Financial Express Online.
Top BSE Sensex gainers and losers: IndusInd Bank was top gainer up over 6 per cent, followed by Axis Bank, Kotak Mahindra Bank, ICICI Bank and Bajaj Finance. On the flip side, just four stocks NTPC, Mahindra & Mahindra (M&M), HDFC Bank and Bharti Airtel closed in red.
RBI’s move a confidence booster: “This is an unexpected yet crucial step taken up by RBI after the market witnessed a series of financial debacles that had taken almost a medium-term to understand what’s happening in the industry. However, in the current scenario, RBI’s move to provide liquidity to the high-risk debt mutual fund segment would be a confidence booster for the investors as well as for the mutual fund industry from succumbing into the negative sentiment. This will help the mutual funds to have a buffer to withstand the redemption pressures and would save the NAVs losing their value,” Ravi Singh, VP – Head of Research, Karvy Stock Broking, told Financial Express Online.
Outlook for the week ahead: In the holiday-shortened week, market participants will keenly watch the newsflow regarding coronavirus and corporate earnings. “On the global front, Fed meeting would be on investors’ radar w.r.t Fed’s recent actions to combat COVID-19, as well as economic outlook, will be keenly watched. Further, the announcement of US Q1 GDP data (on April 29th) will also be closely tracked. Traders should continue with hedged bets and wait for further clarity,” Ajit Mishra, VP – Research, Religare Broking Ltd, said.