Indices up 1%: Sensex rises over 500 points, Nifty above 8,800-mark after RBI governor announces repo rate cut by 75 bps
Sensex was up 530.03 points or 1.77 percent at 3,0476.80. The Nifty was up 213.45 points or 2.47 percent at 8854.90. About 1298 shares have advanced, 340 shares declined, and 81 shares are unchanged
Indices went off the day's high after Shaktikanta Das, governor, Reserve Bank of India (RBI) cut the repo rate by 75 bps to 4.4 percent when the governor began his speech.
However, at 10.18 AM, the Sensex was up 530.03 points or 1.77 percent at 3,0476.80. The Nifty was up 213.45 points or 2.47 percent at 8854.90. About 1298 shares have advanced, 340 shares declined, and 81 shares are unchanged.
Equities rose in early trade on Friday, a day after the government announced a relief package to help the poor cope with widespread disruptions from a coronavirus -triggered lockdown, as investors hoped for more stimulus measures from the country’s central bank.
Equity benchmark Sensex surged over 1,100 points in opening session on Friday led by gains in banking stocks ahead of Reserve Bank Governor Shaktikanta Das' address. Positive cues from the global markets too enthused investor sentiment here.
— CNBC-TV18 (@CNBCTV18Live) March 27, 2020
The 30-share BSE barometer was trading 1,140.10 points or 3.81 percent higher at 31,086.87.
Similarly, the NSE Nifty zoomed 367.10 points, or 4.25 per cent, to 9,008.55.
IndusInd Bank was the top gainer in the Sensex pack, rallying up to 20 per cent, followed by Axis Bank, SBI, Bajaj Finance, ICICI Bank, HDFC Bank and M&M. On the other hand, Bharti Airtel, HCL Tech, TCS and Bajaj Auto were the top losers.
In the previous session, equity benchmarks surged for the third straight session, logging their best three-day gains in years, after the government's much awaited stimulus measures for coronavirus lockdown-hit segments lifted sentiments.
The BSE gauge surged 1,410.99 points or 4.94 per cent to settle at 29,946.77; while the Nifty shot up 323.60 points or 3.89 per cent to 8,641.45.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold equity shares worth Rs 484.78 crore on Thursday, according to provisional exchange data.
According to traders, after Finance Minister Nirmala Sitharaman's Rs 1.70 lakh crore economic stimulus to ease the economic blow of the COVID-19 pandemic, investors are eyeing more sops from Reserve Bank of India (RBI) Governor, who is scheduled to address media at 1000 hours.
Domestic markets have been driven by optimism on $2 trillion package to US economy and also in anticipation of an economic package by the RBI for the Indian economy.
Finance Minister's package did not address to the needs of the corporate sector, analysts said, adding that this would, perhaps, be followed by monetary stimulus by RBI along with forbearance on loan repayments.
On the global front, bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading on a positive note.
Stocks on Wall Street ended with firm gains in overnight trade.
Brent crude futures, the global oil benchmark, rose 0.87 per cent to USD 26.57 per barrel.
The Indian rupee appreciated by 56 paise to 74.60 against the US dollar in early trade on Friday tracking positive opening in domestic equities, as investors awaited positive cues from the Reserve Bank of India to tide through the coronavirus crisis.
Forex traders said, the domestic unit was trading higher ahead of the media briefing by RBI Governor Shaktikanta Das. Besides, the announcement of the various welfare measures by Finance Minister Nirmala Sitharaman on Thursday also supported investor sentiments.
At the interbank foreign exchange the rupee opened at 74.60, registering a rise of 56 paise over its previous close.
On Thursday, rupee had settled at 75.16 against the US dollar.
The assurance of domestic stimulus by the government boosted investor sentiment. However, there are concerns over the impact of coronavirus outbreak on the domestic as well as global economy.
Meanwhile, the dollar index, which gauges the greenback's strength against the basket of six currencies was trading 0.37 per cent lower at 98.98.
The 10-year government bond yield was at 6.13 percent in morning trade.
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ONGC was the top gainer in the Sensex pack, rallying 4.66 percent, followed by NTPC, Reliance Industries, IndusInd Bank, Axis Bank and PowerGrid
Even though the NSE, as well as the BSE, extended trading hours till 5 pm Wednesday, the overall volumes could not touch the usual averages
ONGC was the top gainer in the Sensex pack, rallying around 6 percent, followed by L&T, Bajaj Finance and Bajaj Finserv