Sensex, Nifty end with gains, helped by rallying banks, financials; here’s what moved share markets

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April 28, 2020 4:18 PM

Eight of the eleven sectoral indices on the National Stock Exchange ended the day in the green. Nifty Privat Bank saw the biggest surge gaining 3.56%, followed by Nifty Financial Services and Nifty Bank index.

It was bank stocks and financials that led the indices to surge back up from the day’s low.

For the second day-straight domestic benchmark indices ended the day in green, despite a volatile trading session. S&P BSE Sensex jumped 453 points from the day’s low to end the session 371 points or 1.17% higher at 32,114 points. The broader NSE Nifty-50 gained 98.6 points or 1.06% to finish the trading session at 9,380 points. The rally, led by banks and financials, saw private-sector lender IndusInd Bank gain 15.11% despite reporting a 16% fall in profits the previous day. Sun Pharma slipped 3.27%, followed by NTPC, Nestle, and HCL Tech.

Bank and Financial rally yet again: It was bank stocks and financials that led the indices to surge back up from the day’s low. “Benchmark indices ended positive tracking global markets, led by financials. Hopes of a fiscal stimulus have given support to the markets. Stock specific news reactions are happening based on the results and management commentary. The sustainability of this rally depends on the easing of lockdown measures and the measures to get businesses back on track,” said Vinod Nair, Head of Research, Geojit Financial Services.

Most Nifty sectoral indices end in green: Eight of the eleven sectoral indices on the National Stock Exchange ended the day in the green. Nifty Privat Bank saw the biggest surge gaining 3.56%, followed by Nifty Financial Services and Nifty Bank index. Nifty pharma, the index that had been gaining for the past few weeks slipped 2.25%. “HDFC Ltd & Bajaj Finance led the charge which was well supported by Axis Bank and IndusInd Bank. De-Leveraging exercise from RIL through a planned Rights Issue also helped markets hold on to gains,” said S Ranganathan, Head of Research, LKP Securities.

RIL to consider a rights issue: Mukesh Ambani’s Reliance Industries on Monday informed the bourses that its board will consider a rights issue when it meets on April 30. Although the size of the issue is not known, experts talking to Financial Express Online estimated that RIL could plan to raise up to Rs 50,000 crore from the issue.

Sensex now up 23% from March lows: With the 1.17% jump witnessed on Tuesday, S&P BSE Sensex has now gained 23.61% from the lows of March 23. Although analysts have still not ruled out another fall in the equity markets sighting uncertainty in the lockdown restriction easing.

Market outlook by Ajit Mishra VP – Research, Religare Broking:
The recent buoyancy in banking is certainly an encouraging sign but we feel others should also pitch in for a sustainable surge in the benchmark. In the coming sessions, we expect that earnings announcements, particularly from Nifty pack (HUL, Tech Mahindra) and F&O expiry, will continue to lead stock-specific swings this week. We reiterate our view focusing on stock-selection and trade management amid the prevailing uncertainty.

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