We could see some pause in relentless selling but we are still to see fresh buying. So, in near term we could see declining volatility and market's move should also be getting narrower than witnessed earlier
Extending gains from the previous session, domestic equity market benchmarks Sensex and Nifty opened higher in Wednesday’s trade. However, the headlines indices are trading volatile after a gap-up opening as government has announced a 21-day countrywide lockdown to contain the fast spread coronavirus (COVID-19). The 30-share index Sensex was trading 112 points or 0.42 per cent higher at 26,786, while the broader Nifty 50 index was ruling at 7849, up 48 points or 0.62 per cent. “The announcement of relaxation of regulatory deadlines today is definitely positive, however, markets would be keenly awaiting a stimulus package from the government. Nonetheless, we believe the update on the spread of Coronavirus cases would be the single biggest factor dictating the market trend,” Ajit Mishra, VP – Research, Religare Broking Ltd said.
RIL top Sensex gainer– As many 15 stocks out of 30 Sensex stocks were trading in green, with Reliance Industries as top gainer, up 6.46 per cent, followed by Maruti, Nestle India and Bharti Airtel. Conversely, ITC and IndusInd Bank were top Sensex loser, down over 6 per cent each.
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Sectoral indices trade mix– Sectoral indices were trading mix in Wednesday’s session with Nifty Bank index down over a per cent, dragged by weakness in Punjab National Bank, IndusInd Bank and ICICI Bank. While Nifty Pharma index was trading higher led by gains in Piramal Enterprises, Cipla and Biocon.
21-day country wide lockdown- PM Narendra Modi has announced a 21-day country wide lockdown to contain the novel fast-spreading coronavirus. All trains, flights, and bus services have been cancelled as India is trying hard to disinfect itself from the clutch of deadly Coronavirus COVID-19. PM Modi has urged people not to panic as he stressed that all “essential commodities” will be available in the market during this ‘lockdown’ phase.
Where will markets move from here- “We could see some pause in relentless selling but we are still to see fresh buying. So, in near term we could see declining volatility and market’s move should also be getting narrower than witnessed earlier,” Narendra Solanki, Head Fundamental Research-Investment, Anand Rathi Shares and Stock Brokers.
$2 trillion package to fight coronavirus- US policymakers are close to clearing a $2 trillion stimulus package to fight against fast-spreading coronavirus. This boosted investor sentiment in global markets. However, Indian stock market remained unaffected as government has imposed 21-day lockdown in the country.
Coronavirus cases cross 550-mark in India– As per the latest updates provided by the Ministry of Health on March 25 at 9.15 AM, total confirmed cases for Indian nationals are 519, total confirmed cases for foreign nationals are 43, and 41 have been diagnosed and cured.