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Markets trade firm in early deals; Nifty reclaims 9,000 mark
Mar-27-2020

Indian markets extended their previous sessions’ gains with gap-up opening on Friday. Markets are trading firm in early deals with gains around 4% each, on hopes of more stimulus measures to combat the coronavirus pandemic. Reserve Bank of India (RBI) Governor Shaktikanta Das will address a press conference later today, with the central bank expecting to cut interest rates and announce other liquidity measures. Sensex and Nifty surpassed their crucial 31,000 and 9,000 levels, respectively. Market participants overlooked SBI Research's Ecowrap report stating that the country's economic growth is likely to fall sharply to 2.6% in 2020-21 due to lockdown amid the coronavirus pandemic.

Global cues remained supportive with all the Asian markets trading higher following the overnight gains on Wall Street after the US Senate finally voted to approve a massive $2 trillion stimulus package in response to the coronavirus pandemic. Meanwhile, the US now has the most number of confirmed coronavirus cases in the world, overtaking China.

Back home, Telecom stocks were in focus as the Department of Telecommunications (DoT) asked operators to provide the Wireless Planning and Coordination Wing (WPC) with details of the amount of spectrum in each circle they would require temporarily. In scrip specific developments, Yes Bank soared after its board approved a proposal to raise Rs 5,000 crore. NTPC rallied as it announced the acquisition of hydropower firms THDC India and North Eastern Electric Power Corporation.

The BSE Sensex is currently trading at 31051.30, up by 1104.53 points or 3.69% after trading in a range of 30679.04 and 31126.03. There were 26 stocks advancing against 4 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index rose 4.31%, while Small cap index was up by 3.87%.

The gaining sectoral indices on the BSE were Bankex up by 6.93%, Realty up by 5.64%, PSU up by 5.17%, Industrials up by 5.05%, Capital Goods up by 4.93% while, Telecom down by 2.67% was the sole losing index on BSE.

The top gainers on the Sensex were Indusind Bank up by 14.99%, Axis Bank up by 14.99%, SBI up by 8.92%, Bajaj Finance up by 8.03% and ICICI Bank up by 6.75%. On the flip side, Bharti Airtel down by 3.18%, HCL Technologies down by 0.55%, TCS down by 0.27% and Bajaj Auto down by 0.19% were the few losers.

Meanwhile, rating agency Crisil has cut its growth estimate for India to 3.5 percent for next financial year (FY21) amid severe dent in the economic activity due to the coronavirus pandemic. The agency said the estimate of 3.5 percent growth in 2020-21 assumes a normal monsoon and also a subsidising of the pandemic's economic impact in the June quarter. The slump in growth will be concentrated in the first half of the next fiscal, while the second half should see a mild recovery. Earlier, the agency had predicted an economic growth of 5.2 percent for the next financial year.

Further, the agency welcomed the Rs 1.70-lakh crore package announced by Finance Minister Nirmala Sitharaman but said more measures like loan forbearances for small businesses and households are necessary. The country has been placed in a 21-day lockdown as authorities try to restrict the spread of coronavirus and minimise the number of infected cases. Currently, 13 people have succumbed to the virus and over 650 infected.  The agency said the pandemic's cost is not only restricted to financial one like the post-Lehman Brothers crisis of 2008, but it also involves enormous human suffering that has not been witnessed in decades.

Besides, it said even though services, which account for 41 percent of the total exports, have been resilient so far, the impact in advance economies will hit Indian IT and tourism sectors and dent export earnings. It also said that the ongoing lockdown is affecting manufacturing activity and also services and, in turn, affecting the domestic supply chains. It added that daily wage earners will be in the firing line.

The CNX Nifty is currently trading at 9025.80, up by 384.35 points or 4.45% after trading in a range of 8909.55 and 9038.90. There were 48 stocks advancing against 2 stocks declining on the index.

The top gainers on Nifty were Axis Bank up by 15.00%, Indusind Bank up by 14.99%, SBI up by 9.34%, Bajaj Finserv up by 8.79% and Bajaj Finance up by 8.15%. On the flip side, Bharti Airtel down by 2.37% and Bajaj Auto down by 0.10% were the only losers.

All the Asian markets are trading in green; Nikkei 225 surged 526.65 points or 2.82% to 19,191.25, Straits Times gained 61.46 points or 2.47% to 2,549.02, Hang Seng added 281.80 points or 1.21% to 23,634.14, Taiwan Weighted increased 75.56 points or 0.78% to 9,811.92, KOSPI rose 38.33 points or 2.27% to 1,724.57, Jakarta Composite jumped 333.27 points or 7.68% to 4,672.17 and Shanghai Composite was up by 39.08 points or 1.41% to 2,803.99.

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