Sensex rises 370 points, Nifty nears 9,400; IndusInd Bank surges 17%8 min read . Updated: 28 Apr 2020, 03:32 PM IST
- Nifty sectoral indices end mixed. Nifty Bank jumps about 3%
- BSE MidCap, BSE SmallCap gain around 1%
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Indian equity market managed to hold opening gains and ended higher after a day of volatile trade. Among sectors, financial services stocks were the top performers, with heavyweights--IndusInd Bank, HDFC Bank and Axis Bank--driving the indices. Bajaj Finance and Bajaj Finserv also contributed to the last-hour rally.
Key indices had started the day on a choppy note with a positive bias, tracking mixed cues from global markets, where investors pinned hopes to resumption of economic activities that had come to grinding halt due to the coronavirus pandemic.
While Sensex gained 1.2% to settle at 32,114.52 points, the Nifty 50 index closed 1.1% higher at 9,380.90 points.
Major stocks in Asian ended the day in the green as investors turned hopeful after governments across the world started easing lockdown restrictions imposed to contain the spread of covid-19. Hong Kong's Hang Seng index rose 1.2%, while South Korea's Kospi increased 0.6%. However, Shanghai Composite in China fell a marginal 0.2%.
Shares of HDFC Life Insurance fell 3% as its consolidated net profit dropped 14.5% year-on-year to ₹311.65 crore in the March quarter due to a decline in net investment income and rise in provisions.
JK Paper said its board has approved share buyback of up to a maximum of ₹100 crore at an amount of ₹130 per share. The stock added 6.1% to ₹108.70 on the BSE.
The Indian rupee ended marginally higher at 76.18 against the US dollar amid volatile trade in the domestic equity market.
IndusInd Bank, Bajaj Finance, HDFC Bank, Axis Bank and Bharat Petroleum (BPCL) were the biggest gainers on Nifty 50, while Sun Pharmaceutical, Vedanta, NTPC, Nestle India and Asian Paints led the losses.
The private lender said it has deployed a mobile automated teller machine (ATM) in Ahmedabad to facilitate banking services at the doorstep of residents in wake of the coronavirus outbreak. The mobile ATM will be operational across localities, making three-five stops in a day during 9 am-6 pm. The stocks was the top performer on Nifty and traded 11.1% higher at ₹452.50 on the BSE.
Benchmark indices have started rising after first fews hours of volatile trade. While Sensex gained 250.52 points, or 0.8%, to 31,993.60, Nifty 50 rose 64.65 points, or 0.7%, to 9,346.95.
Fitch Ratings warned that deterioration in India’s fiscal outlook as a result of lower growth or fiscal easing could put pressure on its sovereign rating at a time when the government contemplates announcing a stimulus package for micro, small and medium enterprises (MSMEs) and informal sector.
Shares of Just Dial jumped 12.3% to ₹391.35 on the BSE after the company said its board may consider the proposal to buyback fully paid-up equity shares in a meeting scheduled on 30 April.
The board of the two-wheeler manufacturing company approved raising funds through the issuance of non-convertible debentures (NCDs) worth ₹500 crore on a private placement basis. The stock traded 1.6% lower at ₹294.65 on the BSE.
European stock markets steadied at the start of trading following weeks of volatility caused by the coronavirus outbreak. London and Paris dropped 0.1%, Frankfurt was unchanged, Madrid edged down 0.2% and Milan rose 0.5%, as European nations began to relax lockdowns triggered by the coronavirus pandemic.
Oil prices continued their downward spiral, after slumping 25% on Monday, amid concern about dwindling capacity to store crude worldwide, heightened by fears that fuel demand may be slow to pick up once countries ease curbs imposed on business and social life to combat the coronavirus pandemic. The US West Texas Intermediate (WTI) crude futures fell to as little as $10.64 a barrel, and were off 12.8%, or $1.64, at $11.14 a barrel as of 0635 GMT.
India's Reliance Industries said it will consider its first rights issue in almost 30 years when its board meets on 30 April (Thursday), in another attempt to slash its debt. In an exchange filing late on Monday, the oil-to-retail conglomerate said a rights issue would be on the table at the meeting although it gave no details of what exactly was under consideration.
The pharmaceutical company received final US Food and Drug Administration (USFDA) approval for its first supplemental abbreviated new drug application (sANDA) filed atits new drug formulations facility at JNPC SEZ (Jawaharlal Nehru Pharma City special economic zone) in Visakhapatnam, Andhra Pradesh. The stock was up 0.4% at ₹634.05 on the BSE.
The private lender has signed an agreement with Max Financial Services to acquire 29% stake in the latter's subsidiary, Max Life Insurance Company, for an undisclosed amount, Axis Bank informed the stock exchanges. The transaction is subject to regulatory approvals.
Varroc Engineering has partially resumed manufacturing operations at its facilities in Chakan, Pune (Maharashtra), Pantnagar (Uttarakhand) and Waluj, Aurangabad (Maharashtra). Shares of the company rose a marginal 0.3% to ₹143 on the BSE.
Shares of UPL rose 3.8% to ₹362.90 on the BSE as it has completed the acquisition of Yoloo (Laoting) Biotechnology, an agrochemical maker based in Heibei province of China, from Beijing Yoloo Bio-Technology Corp. The cost of the acquisition is $13.3 million (about ₹95 crore).
Axis Bank may acquire nearly 30% of Max Life Insurance Company from Max Financial Services, the flagship listed company of Analjit Singh, for ₹1,600 crore, according to a report by The Economic Times. India’s fourth-largest private sector bank will become a strategic partner of the life insurance firm, in which Max Financial will eventually hold 70% after a two-stage transaction. Shares of the bank rose 2.3% to ₹437.10 on the BSE.
Shares of the private lender surged nearly 10% as its management allayed investor concerns over financials in a conference call on Monday. New chief executive officer (CEO) Sumant Kathpalia said the bank sees renewed interest from corporate deposits and state governments too have not pulled out baring the initial outflow. The stock was in the green even as the bank reported a net profit of ₹301.84 crore for the March quarter, down 16% on year-on-year (y-o-y), owing to rise in provisions.
Shares of the cement maker moved up over 1% to ₹174.15 on the BSE as the company reported a consolidated net profit of ₹742.59 crore in the first quarter of calendar year 2020, a 6.8% growth from a year ago.
Reliance Industries allotted 27,950 unsecured redeemable non-convertible debentures (NCDs) of face value of ₹10 lakh each, amounting to ₹2,795 crore (PPD series L debentures), issued on a private placement basis.
Benchmark Indian equities extended gains from Monday and opened higher. Optimism over reopening of economic activities in global markets also buoyed the investor sentiment. While Sensex climbed 357.79 points, or 1.1%, to 32,100.87, the Nifty 50 index advanced 96.15 points, or 1%, to 9,378.45.
Crude oil extended sharp losses from Monday, with the US West Intermediate Texas (WTI) plunging below $11 a barrel. On Monday, WTI lost a quarter of its value, after a major exchange-traded fund started selling its short-term contracts of the commodity. WTI crude fell 15% to $10.90 a barrel after tanking 24% Monday.
Asian shares were mixed as governments inched towards letting businesses reopen and central banks stepped in to provide cash to economies. Japan's benchmark Nikkei 225 lost earlier gains, dropping 0.4% to 19,706.19. South Korea's Kospi was unchanged at1,921.39. Australia's S&P/ASX 200 rose 0.2% to 5,329.50. Hong Kong's Hang Seng climbed 0.2% to 24,329.34, while the Shanghai Composite fell nearly 0.2% to 2,811.09. (PTI)
IndusInd Bank reported a net profit of ₹301.84 crore for the March quarter, down 16% on year-on-year (y-o-y), owing to rise in provisions. Shree Cement, UPL, Axis Bank, Indiabulls Real Estate and Minda Industries are some other stocks to be in focus.
The Dow Jones Industrial Average gained 1.5% to end the day at 24,133.78 points. The broad-based S&P 500 also rose 1.5% to 2,878.48, while the tech-rich Nasdaq Composite Index advanced 1.1 percent to finish Monday's session at 8,730.16.
Key Wall Street indices gained more than 1% on Monday as investors turned hopeful after several states in the US started relaxing shutdown restrictions imposed to curb the spread of coronavirus. All three major US stock averages advanced, and are all now within 20% of their record closing highs reached in February, with the benchmark S&P 500 on track for its best month since 1987, after trillions of stimulus dollars helped U.S. equities claw back much of the ground lost since the coronavirus crisis brought the economy to a grinding halt.