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Stock Market Latest Updates: Sensex surges over 900 points, Nifty reclaims 9,300-mark; Nifty Bank zooms over 7%

Stock Market Latest Updates: Sensex surges over 900 points, Nifty reclaims 9,300-mark; Nifty Bank zooms over 7%

FP Staff May 27, 2020 16:02:49 IST
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Stock Market Latest Updates: Sensex surges over 900 points, Nifty reclaims 9,300-mark; Nifty Bank zooms over 7%

Highlights

14:29 (ist)

Vijay Mallya likely to seek asylum in Britain

Beleaguered liquor baron Vijay Mallya may seek political asylum in Britain and reportedly filed an application in this regard, said a news report.

Mallya's lawyers had been working on the option of asylum as a last resort, if his appeal challenging the extradition proceedings were rejected, reported The Economic Times citing legal sources in the UK.

The request seeking asylum for the 64-year-old businessman has already been sent to the office of UK home secretary Priti Patel, the report said.

On 14 May, ​Mallya lost his application seeking leave to appeal in the UK Supreme Court, setting a 28-day clock on extradition proceedings.

It marked a big legal blow to Mallya, who last month lost his High Court appeal against an extradition order to India on charges of fraud and money laundering related to unrecovered loans to his now-defunct Kingfisher Airlines.

09:10 (ist)

Economy to shrink by 5%, says CRISIL

India's fourth recession since Independence, the first since liberalisation and perhaps the worst to date, is here, CRISIL said on Tuesday as it predicted the economy to shrink by 5 percent in the current fiscal because of coronavirus lockdown.

"The first quarter (April to June 2020) will suffer a staggering 25 percent contraction. About 10 percent of gross domestic product (GDP) in real terms could be permanently lost. So going back to the growth rates seen before the pandemic is unlikely in the next three fiscals," it said in its assessment of India's GDP.

In the past 69 years, India has seen a recession only thrice - as per available data - in fiscals 1958, 1966 and 1980. The reason was the same each time - a monsoon shock that hit agriculture, then a sizeable part of the economy.

CRISIL said the recession in the current fiscal (April 2020 to March 2021) is different as agriculture could soften the blow this time by growing near its trend rate, assuming a normal monsoon. The coronavirus lockdown, first imposed on March 25 and extended thrice till May 31, has curtailed economic activity severely. "The first quarter of this fiscal will be the worst affected," it said.

"Not only will the first quarter be a washout for the non-agricultural economy, services such as education, and travel and tourism among others could continue to see a big hit in the quarters to come. Jobs and incomes will see extended losses as these sectors are large employers," it said.

08:49 (ist)

Markets likely to open mildly high

Deepak Jasani, Head Retail Research, HDFC securities, said, "The markets could open mildly higher in line with most other Asian markets as hopes of early breakthrough in coronavirus vaccine is offset by worries on US China front Indian markets could open mildly higher in line with mildly positive Asian markets today and strong Dow Jones index on Tuesday.

"US stocks finished higher Tuesday, but off key levels following a long holiday weekend, as investors were emboldened by fresh coronavirus vaccine news from Novavax and Merck and signs that global economies are crawling back from the pandemic shutdown. In the process S&P 500 index broke through the psychologically-important 3,000 level and broke above the 200-day moving average. The Stoxx Europe 600 advanced 1.1%, ending at 348.92, its highest closing level since 6 March.

"The European Commission will unveil Wednesday a new coronavirus-related stimulus package and expectations are that it could boost markets across Europe.

"Crude-oil prices closed higher, with the price of a barrel of July West Texas Intermediate crude adding $1.10, or 3.3%, to end at $34.35. In precious metals, gold for June delivery fell $29.90, or 1.7% to settle at $1,705.60 an ounce.

"Hong Kong’s leader Carrie Lam on Tuesday brushed aside concerns about a Chinese power grab in the territory, after House national security adviser Robert O’Brien over the weekend threatened to sanction China if it carries through with plans for new national security laws in Hong Kong, where protests have reignited. Also Tuesday, the White House said that a move by China to tighten its grip on Hong Kong could threaten the city’s status as a financial hub

"India's gross domestic product (GDP) growth is set to fall off the cliff and contract 5 percent this fiscal, Crisil said. The first quarter of FY21, it said, will witness a staggering 25 percent contraction (on-year). It also noted that going back to the pre-pandemic growth rates is unlikely in the next three fiscals despite policy support, with an estimated permanent loss of 10 percent to the country's real GDP (under the base case).

"Asian shares shed some of their recent gains on Wednesday as investor concerns about rising tensions between the United States and China tempered optimism about a re-opening of the world economy.

"US President Donald Trump said late on Tuesday he is preparing to take action against China this week over its effort to impose national security laws on Hong Kong, but gave no further details.

"Technically, the Nifty seems to be in consolidation mode as it is now trading within the 8960-9180 trading range. Further directional cues are likely to emerge on a move beyond this range," Jasani said.

LIVE NEWS and UPDATES

May 27, 2020 - 15:56 (IST)

Sensex surges 996 points, Nifty above 9,300-mark 

Indices staged a sharp recovery in the afternoon trade after opening in the green on Wednesday. The rally witnessed Nifty reclaiming 9,300-level while the Sensex went past 31,000-mark supported by the gains in banking and IT heavyweights.

Sensex surged 995.92 points or 3.25 percent at 31,605.22 while the Nifty was up 285.90 points or 3.17 percent at 9,314.95. 

Axis Bank was the top gainer in the Sensex pack zooming over 13 percent. Other gainers included ICICI Bank, HDFC Bank, IndusInd Bank, Bajaj Finance and SBI.

On the Nifty, the major gainers were Axis Bank, ICICI Bank, Wipro, Grasim Industries and HDFC Bank, while losers were Sun Pharma, UltraTech Cement, Titan, Shree Cements and Asian Paints.

Among Sectors, Nifty Bank rose 7 percent followed by IT, metal and energy space, while pharma index ended marginally lower.

May 27, 2020 - 15:46 (IST)

Sun Pharma Q4 profit falls 37%

May 27, 2020 - 15:42 (IST)

Govt may launch coal blocks auction process under commercial mining on 11 June

The Centre is likely to launch the process of coal blocks auction under commercial mining on 11 June 11 and around 50 mines are expected to go under the hammer.

An official on the condition of anonymity said the "government will come out with the notice inviting tender (NIT) for auction of coal mines for sale of coal on 11 June."

The official further said around 50 coal blocks are likely to be put on sale.

May 27, 2020 - 15:39 (IST)

Donations to PM CARES fund to now be considered as CSR spend

May 27, 2020 - 15:36 (IST)

445 domestic flights carrying 62,641 passengers operated on Tuesday: Hardeep Singh Puri

A total of 445 domestic flights carrying 62,641 passengers operated on Tuesday, said Civil Aviation Minister Hardeep Singh Puri on Wednesday, asserting the airports functioned smoothly on the second day of the recommencement of domestic services in India.

On Monday, a total of 428 flights had operated in the country.

India resumed its domestic services on Monday after a gap of two months. All scheduled domestic services were suspended in India from March 25 to May 24 due to the coronavirus pandemic.

"Our skies & airports are busy again. On 26 May, the 2nd day of recommencement of domestic passenger flights in India, our airports handled 62,641 flyers on 445 departures & 447 arrivals.  All airport functioning was smooth. Only 6 departures were rescheduled," Puri said on Twitter on Wednesday.

May 27, 2020 - 15:34 (IST)

Moderate participation expected in upcoming spectrum auctions: ICRA

The Telecom Regulatory Authority of India (TRAI) recommended auctions with one of the largest quanta of spectrum on offer - more than 8,500 MHz, which at reserve price is valued at around Rs 5.7 lakh crore.

ICRA expects a relatively muted participation fetching around Rs 55,000–60,000 crore to the exchequer. This, along with the impending AGR dues, are expected to result in further elevation of the industry debt to around Rs. 4,60,000 crore as on 31 March, 2021 despite sizeable deleveraging done by the telcos as well as the anticipated improvement in cash flow generation post the tariff hikes. 

Such a high valuation is on account of high reserve prices and high quantity of spectrum for the newer bands i.e. 700 MHz and 3300-3600 MHz, which are primarily expected to be used for 5G.

The 700 MHz was put to auction in October 2016 where it went unsold and thereafter the price for this band has been revised downwards for the forthcoming auction.
 

May 27, 2020 - 15:33 (IST)

TCS iON readies exam centers with social distancing norms
 

TCS iON, a unit of Tata Consultancy Services, has announced a new standard operating procedure called social distanced assessments (SD-Assessments) drawn up in consultation with medical and public health experts.

This will help it conduct secure, proctored in-center assessments for recruitment and academic admissions in the post lockdown phase, without compromising on the safety of the candidates and proctoring staff, the company said in a statement.

The SD-Assessments norms lay out the rules to be followed before, during and after an exam, to ensure that the necessary precautions, hygiene and social distancing requirements are adhered to. This will ensure the smooth and safe conduct of in-center exams at TCS iON’s centers.

Venguswamy Ramaswamy, Global Head, TCS iON, said, “Exam-conducting authorities are eager to resume assessments and at the same time, are anxious about the safety of students and everyone involved. We are grateful to the health experts from AIIMS and PHFI for providing invaluable inputs to our process for conducting social distanced assessments with all the necessary rigor and care.”

May 27, 2020 - 15:29 (IST)

Lego Group ties up with NITI Aayog, Save The Children

The Lego Group, the toy brand, in collaboration with two highly reputed organisations, NITI Aayog and Save The Children, introduced targeted initiatives in India to promote ‘Learning Through Play’ and support home-based learning during these unprecedented times.

The Lego Group aligned with Save the Children to promote responsive care-giving and play-based learning practices for children aged 3-8 years both at state and national levels.

The initiative will also improve access to quality pre-school education through the Integrated Child Development Services (ICDS) and pre-school Centres when they re-open.

It will focus on building capacity of pre-school anganwadi workers, anganwadi helpers and ICDS functionaries to support the development and school readiness of young children. 

May 27, 2020 - 15:21 (IST)

Sensex surges 1,000 points, Nifty regains 9,300-mark 

Benchmark extended the rally as Sensex soared 1006.71 points or 3.29 percent to 31,616.01 while the broader Nifty was up 294.25 points or 3.26 percent at 9,323.30 at around 3 pm.

The market rally was led by gains in banking and information technology heavyweights such as HDFC Bank, ICICI Bank, HDFC, Infosys, Kotak Mahindra Bank and Axis Bank.

Axis Bank was the top gainer in the Sensex pack soaring over 13 percent. Other gainers included ICICI Bank, IndusInd Bank, HDFC Bank, Kotak Mahindra Bank, Bajaj Finance and SBI. 

May 27, 2020 - 15:12 (IST)

Tata BlueScope Steel launches smart steel structures


To address the ever-increasing demand for high quality, ready-to-install health infrastructure, Tata BlueScope Steel, manufacturers of coated steel, steel building products and solutions have introduced high strength, modular and quick to install steel structures which would help to combat COVID-19.  

The structures are specially designed for anyone seeking to install such facilities in their premises or locality. 

Riten Choudhury, MD Tata BlueScope Steel said, “With COVID-19 pandemic, optimising healthcare facilities for the affected is the need of the hour. Only way is to develop alternatives that are secure and quick to erect. At Tata BlueScope Steel, we are committed to fight back the virus with our easy to build and maintain structures that are designed, keeping in mind pa=ent’s comfort and healthcare worker’s security.”

Stock Market Latest Updates: Sensex surges over 900 points, Nifty reclaims 9,300-mark; Nifty Bank zooms over 7%

New York: Asian shares shed some of their recent gains on Wednesday as investor concerns about rising tensions between the United States and China tempered optimism about a re-opening of the world economy.

US President Donald Trump said late on Tuesday he is preparing to take action against China this week over its effort to impose national security laws on Hong Kong, but gave no further details.

Worsening relations between the world’s two biggest economies will further hobble global growth, already in the doldrums due to the coronavirus pandemic worldwide.

E-Mini futures for the S&P 500 ESc1 edged down 0.05 percent, just short of the 3,000 chart level. The index had cleared 3,000 points in Wall Street overnight before pulling back, as some traders returned to the New York Stock Exchange floor for the first time in two months.

The Nikkei share average slipped 0.1 percent, unwinding some of the gains made on Tuesday when it climbed to their highest in nearly 12 weeks. Australia's ASX 200 lost 0.9 percent in early trade and South Korea's KOSPI fell 0.2 percent.

“The S&P 500 looked to be set to close above 3,000 until the late headline that the United States was considering a range of sanctions on Chinese officials and businesses should China go ahead with its legislation regarding Hong Kong,” analysts at the National Australia Bank said in a note.

“The extent of those possible sanctions is uncertain,” the analysts said.

China’s plans to impose national security laws in Hong Kong have triggered the first big street unrest in the Asian financial hub for the first time since last year. Overnight, hundreds of riot police took up posts around Hong Kong’s legislature in anticipation of protests on Wednesday.

Indeed, some analysts warned that even the recent jump in share prices showed signs of caution.

“Stock buying in the last 24 hours has a strong defensive bent,” Michael McCarthy, chief market strategist at CMC said in a note. “Beaten down consumer and financial stocks are leading markets higher, at the expense of the previously popular tech and healthcare sectors.”

Moderating demand for risk helped the safe-haven US dollar index to edge up 0.03 percent to 99.042, reversing from losses overnight.

US Treasury yields retreated from levels struck overnight, with two-year yields hovering at 0.170 percent, up from a record low of 0.105 percent struck on 8 May, but still under 0.20 percent.

Gold prices rebounded from losses as some investors played it safe, with spot gold unchanged at $1,711.45 per ounce.

The retreat from risk led oil prices to give up earlier gains. US West Texas Intermediate crude futures were down 0.3 percent.

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