Markets open on positive note: Sensex trades in green, Nifty above 9,100-level; RIL up 1% for second straight day

The Nifty was trading on the National Stock Exchange over the 9,200 mark.

FP Staff April 23, 2020 10:39:26 IST
Markets open on positive note: Sensex trades in green, Nifty above 9,100-level; RIL up 1% for second straight day

Equity indices opened on a positive note on Thursday tracking gains across global markets, as oil prices recovered from a collapse earlier in the week, while hopes of a new stimulus package to mitigate the hit from the coronavirus outbreak lifted sentiment.

The Nifty50 was trading on the National Stock Exchange over the 9,200 mark.

At 9.53 AM, the Nifty50 was trading at 9,257.30, higher by 70 points or 0.76 per cent from its previous close of 9,187.30 points.

The BSE Sensex was trading at 31,557.69, higher by 178.14 points, or 0.57 per cent from its previous close of 31,379.55 points.

It had opened at 31,646.45 and has so far touched an intra-day high of 31,646.45 and a low of 31,292.92.

Energy and financial stocks led the gains in Mumbai, with conglomerate

Reliance Industries Ltd rising for a second straight day, up about 1 percent. Private-sector lenders ICICI Bank Ltd and Kotak Mahindra Bank Ltd gained 2.7 percent each.

Rupee up 41 paise to 76.27 against dollar

The rupee rose rises 41 paise to 76.27 against US dollar in early trade.

Asia stocks pull ahead on US stimulus, oil rebound

Asian markets climbed after Wall Street ended higher as oil prices rebounded and the US Senate approved nearly $500 billion more in aid to help small businesses weather the health crisis.

Hopes of new measures to jump start growth buoyed domestic market sentiment, even as a senior minister said after a cabinet meeting on Wednesday that a package would be announced as and when it is designed.

Better-than-expected US corporate earnings also lifted equities, analysts said, though overall sentiment remained fragile as the pandemic cut a destructive path through the world economy.

MSCI’s broadest index of Asia Pacific shares outside of Japan bounced from two-week lows to be up 0.5 percent at 460.43 points.

Australian S&P/ASX added 0.4 percent, Chinese shares opened firm with the blue-chip index up 0.3 percent. Japan’s Nikkei climbed 0.8 percent.

The gains followed a strong overnight lead from Wall Street with the Dow up 2 percent, S&P 500 adding 2.3 percent and Nasdaq rising 2.8 percent.

All 11 S&P 500 sector indexes climbed as the US Senate unanimously approved the new relief package, adding to trillions of dollars in stimulus that has helped Wall Street rebound from its March lows.

The House of Representatives is expected on Thursday to clear the relief, which would be the fourth coronavirus measure passed by Congress, and would boost the overall federal financial response to almost $3 trillion.

Stock markets may have bottomed out after the impressive bounce since a rout last month, analysts said.

Even so, the recent recovery has been narrowly focussed on the big tech firms, said Seema Shah, chief strategist at Principal Global Investors.

Four out of every five stocks are still in a bear market while European benchmark equity indices and the US small-cap index are also in bear territory, “throwing severe doubts on the impression that investors are optimistic about the outlook,” she added.

However, Shah believes market positioning may now work to propel markets higher, helped by solid policy stimulus around the world.

“Investors have built up meaningful cash positions suggesting that, not only is indiscriminate selling behind us, but investors have sufficient dry powder to take advantage of attractively valued risk assets.”

In Europe, traders were buoyed after Italy breezed through a major debt sale on Tuesday and speculation continued that the European Central Bank would provide more support measures.

Still, it may take European Union countries until the summer if not longer to agree on how to finance aid to help economies recover from the pandemic as major disagreements persist, a bloc official said on Wednesday.

Brent oil extended gains on Thursday to rise more than 3 percent to $21.09 a barrel on the prospects for further production cuts to reduce the glut in the oil market, sending the S&P 500 energy index up 3.6 percent.

US crude was up 3.3 percent at $14.22. US crude futures fell deep into negative territory on Monday as the market grappled with a supply glut and cratering demand.

With agency inputs

Updated Date:

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