The equity benchmark made a strong gain today as the value buying emerged in financial stocks which has been under performing over the past few sessions. Buying was broad-based and market ended with a gain of 2.3 percent.
All sectoral indices ended in the green territory, while pharma and financial service indices witnessed sharp buying in the afternoon session. On stock specifics, HDFC surged 6 percent as the top gainer, followed by Dr. Reddy and M&M. Hero MotoCorp, IndusInd Bank and Bharti Infratel remained the top laggards in today’s session.
— CNBC-TV18 (@CNBCTV18Live) May 20, 2020
The 30-share index settled 622.44 points or 2.06 percent higher at 30,818.61, while the NSE Nifty rose 187.45 points, or 2.11 percent, to end at 9,066.55.
HDFC was the top gainer in the Sensex pack, surging over 5 percent, followed by M&M, L&T, Tata Steel, Bajaj Finance, HDFC Bank and Sun Pharma.
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments, told Firstpost, "The Nifty50 Index continued its intraday upward trajectory and comfortably crossed its resistance of 9030. The next levels of resistance would be 9,150 and 9250 with a good base formation at 8,850. This rally seems broad-based where most stocks have handsomely contributed to the rally up and good volumes have been clocked on the Nifty futures as well."
Paras Bothra, President-Equity Research, Ashika Stock Broking, told Firstpost said, "The domestic markets opened flat but gained higher later during the day led by buying across all sectors. Positive statements from the Finance Minister that the government was with industry and would do as much as possible depending on how the coronavirus pandemic will pan out, implying there could be further stimulus ahead."
While stock-specific action led benchmarks higher, experts forecast continued volatility in the near-term amid rising number of coronavirus cases in the country.
Going ahead, investors will closely monitor the economic policies, US-China relationship, crude oil prices movements and development of coronavirus cases and vaccines
Sumeet Bagadia, Executive Director Choice Broking told Firstpost, "Finally, the Nifty settled its closing above 9,030 level at 9,066 level with the gain of 187 points which is a good sign for the time being; as from the present level we are seeing a further upside movement. Moreover, the Index has formed a based around 8,800 level from where it gave a very good bounce back earlier also. So at present level, we are expecting the same movement to be replicated in the Index.
"The opening session was good. However, during most part of the session, we saw a range-bound movement. We had to wait till the dying hours to see Index breakout, based on which it managed to close above 9,030 level. At the present level, downside support comes at 9,000-8,800, while upside intermediate resistance comes at 9,100. If the Index sustains above this level then we may see good upside movement up to the level of 9,200-9,350," Bagadia said.
Rupee settles 14 paise lower at 75.80 against dollar
The rupee depreciated by 14 paise to 75.80 (provisional) against the US dollar on Wednesday as headwinds due to US-China trade tiff and worries over the second wave of coronavirus infection weighed on investor sentiment.
Forex traders said positive domestic equities supported the local unit, while sustained foreign fund outflows, US-China trade tiff and concerns over coronavirus pandemic weighed on the local unit.
At the interbank foreign exchange, the rupee opened at 75.60, but pared the initial gains to finally close at 75.80, registering a fall of 14 paise over its previous close.
On Tuesday, the rupee had settled at 75.66 against the US dollar.
During the trading session, the domestic unit witnessed heavy volatility and saw an intra-day high of 75.60 and a low of 75.86.
"The COVID-19 vaccine-trials temporarily excited the market. But there are headwinds due to ongoing US-China trade tiff and worries over second wave of infection. Also, Reliance rights issue has opened today, and we can see some FII participation in it in coming days which may limit the fall in rupee," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services to PTI.
Gupta further noted that "technically, The USD/INR spot is trading in a very tight range of 75.25-76, and we expect it to remain in this until there are major cues. Either side breakout will give further clarity over the trend".
Global stocks adrift as vaccine rally falters
European stocks slipped lower on Wednesday and gold gained as a skeptical press report undermined some hopes for a COVID-19 vaccine and concern about obstacles to a recovery from the pandemic returned.
Italian bonds sustained their multi-week lows, continuing to gain from a Franco-German plan for a 500 billion-euro coronavirus recovery fund, ignoring a hawkish counter-proposal in the works, Reuters said.
Europe’s STOXX 600 index was 1.6 percent lower. The blue-chip FTSE 100 was down 0.4 percen as Rolls-Royce Holdings Plc shed 0.8 percen after it said it would cut 9,000 jobs and might close some of its factories.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1 percen. Its world stock index was 0.1 percen lower after reaching its highest level since March 9 on Tuesday.
Wall Street ended Tuesday lower after medical news website STAT cast doubt on a Moderna Inc COVID-19 vaccine trial. The report said the trial results, which had rallied global stocks this week, lacked detail.
“With markets being very narrative driven, this was sufficient to see European equities pick up where Wall Street left off and head lower,” said James Athey, investment director, Aberdeen Standard Investments.”
Two-thirds of 223 fund managers surveyed by Bank of America reckon recent gains are a bear-market rally.
S&P 500 futures were last up 0.4 percent. Oil was steady and gold rose to $1,750.93 per ounce.
Brent crude futures were at $34.64 per barrel, having rallied nearly 7 percent this week. US crude was 0.4 percent lower at $31.84 a barrel.
--- With inputs from agencies
Updated Date: May 20, 2020 16:30:01 IST