Market ends on positive note; Sensex jumps 637 points, Nifty above 9,350; Re settles higher at Rs 75.46 against dollar
The Nifty bank index was up by 4 percent. Besides, sharp buying was also witnessed in the auto and metal stocks.
The equity market made a gap-up opening as investors' sentiments got a boost after Prime Minister Narendera Modi announced a mega economic relief package of Rs 20 lakh crore which accounts for 10 percent of GDP. While the market paired some early gains due to weak global cues amidst fear of rising second wave of coronavirus cases, sharp buying in beaten-down banking and financial stocks provided support to the market which ended over 2 percent higher.
After rallying 1,474.36 points during the day, the 30-share index surrendered some early gains to settle 637.49 points or 2.03 per cent higher at 32,008.61.
Similarly, the NSE Nifty jumped 187 points, or 2.03 percent, to finish at 9,383.55
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The Nifty bank index was up by 4 percent. Besides, sharp buying was also witnessed in the auto and metal stocks. Pharma and FMCG indices meanwhile ended in red. Stock-wise Larsen and Tourbro, Axis Bank and Adani Ports were the top gainers while Britannia, Sun Pharma and Nestle traded as top losers.
Investors will keep a close eye on the scheduled Finance Minister Nirmala Sitharaman's press conference on Wednesday evening to know the detailed segregation of the economic package.
Sumeet Bagadia, Choice Broking, said "The Index settled at 9,383 level with a gain of 186 points. On Tuesday, Prime Minister Narendra Modi announced a Special Rescue Package of Rs 20 lakh rore which impacted the sentiment positively. We saw a gap-up opening in the markets on back of SGX Nifty; however, the index couldn’t manage to sustain its early gains and made an intraday low during 1st half of the session. Afterwards, a range-bound movement as market was witnessed. An announcement cum clarification on the package from our Finance Minister is awaited. At present level, downside support comes at 9,200-9,100-level, while upside resistance comes at 9,600."
Axis Bank was the top gainer in the Sensex pack, surging around 7 percent, followed by Ultratech Cement, L&T, ICICI Bank, SBI, M&M and Bajaj Finance. On the other hand, Nestle India, Sun Pharma, Bharti Airtel and HUL ended in the red.
The Prime Minister on Tuesday announced a massive new financial package on top of the previously announced measures for a combined stimulus of Rs 20 lakh crore.
He said the package will be around 10 percent of the GDP and "will play an important role in the ''Atmanirbhar Bharat Abhiyan'' (self-reliant India campaign)", adding that the "announcements made by the government so far, the decisions of the RBI and today''s package totals to Rs 20 lakh crore."
The special economic package will have emphasis on land, labour, liquidity and laws, and will be for "our labourers, farmers, honest tax payers, MSMEs and cottage industry", Modi said.
Rupee settles 5 paise higher
The rupee appreciated by 5 paise to 75.46 (provisional) against the US dollar on Wednesday as fiscal stimulus by the government bolstered investor sentiment. Forex traders said Prime Minister Narendra Modi's Rs 20 lakh crore economic stimulus package enthused investors. However, risk sentiments are negative and investor sentiments remain fragile over coronavirus concerns, they added.
At the interbank foreign exchange, the rupee opened on a strong note at 75.31, but during the day the domestic unit lost most of its gains and finally settled at 75.46 against the US dollar, registering a rise of 5 paise over its previous close.
During the trading session rupee witnessed an intra-day high of 75.30 and a low of 75.50.
On Tuesday, the rupee had settled at 75.51 against the US dollar.
In a big push to revive the COVID-hit economy, the Prime Minister on Tuesday announced massive new financial incentives on top of the previously announced packages for a combined stimulus of Rs 20 lakh crore.
"The surprise move of fiscal stimulus by the government had a positive impact on rupee. However, globally, risk sentiments are negative and we have no clarity over the government expenditure plan," Emkay Global Financial Services Head of Research- Currency Rahul Gupta told PTI.
Gupta further noted that "positive comments by Finance Minister Nirmala Sitharaman may cheer rupee but it will be short-lived as the fragility over coronavirus still continues.
-- With PTI inputs
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