Sensex jumps over 400 points tracking gains in financial stocks, Nifty above 9,340-level; IndusInd Bank top gainer

Shares of Indusind Bank surged 10 percent following the private-sector lender’s quarterly results after the bell on Monday.

FP Staff April 28, 2020 10:39:51 IST
Sensex jumps over 400 points tracking gains in financial stocks, Nifty above 9,340-level; IndusInd Bank top gainer

The markets opened in green on Tuesday (28 April). The benchmark Sensex jumped over 400 points tracking gains in financial stocks on Reserve Bank support amid tepid cues from global markets.

After hitting a high of 32,164.65, the 30-share index pared gains to trade 151.91 points or 0.48 percent higher at 31,894.99.

The NSE Nifty advanced 60.05 points, or 0.65 percent, to 9,342.35.

Shares jumped more than 1 percent on Tuesday, helped by a rally in Indusind Bank, while overnight gains in Wall Street after some countries eased lockdown restrictions also buoyed sentiment. Shares of Indusind Bank surged 10 percent following the private-sector lender’s quarterly results after the bell on Monday.

Abhishek Rastogi, Partner, Khaitan & Co, said: "Markets started off on a positive note with few banking shares looking strong. Global scenario looks good ahead of the central bank meetings. While Federal Reserve and the European Central Bank are scheduled to meet in the week, Bank of Japan has already started taking policy decisions and expanding its stimulus program.

"As a corollary, Indian market looks decent taking a cue from Wall Street that closed higher based on the fact that lockdown will be eased. The day looks interesting and focus should remain on banks and pharma companies," Rastogi said.

On Wall Street, the Dow Jones Industrial Average rose 1.51 percent, the S&P 500 gained 1.47 percent and the Nasdaq Composite added 1.11 percent. IndusInd Bank was the top gainer in the Sensex pack, rallying over 8 percent, followed by Axis Bank, HDFC, Tech Mahindra, ICICI Bank, Kotak Bank and SBI. On the other hand, Sun Pharma, HCL Tech, Reliance Industries and Bharti Airtel were among the laggards.

Sensex jumps over 400 points tracking gains in financial stocks Nifty above 9340level IndusInd Bank top gainer

In the previous session, the BSE barometer settled 415.86 points or 1.33 per cent higher at 31,743.08, while the Nifty closed 127.90 points, or 1.40 per cent, to 9,282.30. Foreign portfolio investors were net sellers in the capital market on Monday, as they offloaded equity shares worth Rs 916.42 crore, according to provisional exchange data.

The Reserve Bank of India's Rs 50,000-crore liquidity booster to the mutual fund industry has spurred buying in financial stocks, traders said. Expectation of another stimulus package by the government has also buoyed investor sentiment, they added. Rupee slips 15 paise to 76.40 against dollar

The rupee depreciated 15 paise to 76.40 against the US dollar in opening trade on Tuesday, amid strengthening American currency overseas and volatility in domestic equities.

Forex traders said the weakness in the rupee was largely due to muted domestic equities and strengthening of the US dollar. Moreover, rising coronavirus cases in the country also weighed on the local unit.

The rupee opened weak at 76.33 at the interbank forex market and then fell further to 76.40, down 15 paise over its last close.

The rupee had settled at 76.25 against the US dollar on Monday.

Forex traders said market participants were concerned that the sharp rise in coronavirus cases could weigh on the economy.

In India, the death toll due to COVID-19 rose to 934 and the number of cases climbed to 29,435 in the country on Tuesday, according to the Union Health Ministry.

Meanwhile, the number of cases around the world linked to the disease has crossed over 30 lakh and the death toll has topped 2 lakh.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.10 per cent to 100.13.

--With inputs from agencies

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