Sensex and Nifty traded majorly bullish on Wednesday, as the much anticipated economic relief package of Rs 20 lakh crore cheered domestic investors. Bucking the weak global trend, Sensex climbed over 1,000 points at the opening bell and Nifty too started with a gap-up, rising 388 points to 9,584.
This was on back of PM's COVID-19 relief fiscal package worth Rs 20 lakh crore, equalling 10% of GDP, that boosted market sentiments. Among the largest in the world, the stimulus package is a significant measure taken by the government to limit the economic fallout of the coronavirus pandemic, experts said.
Later, backed by weak global trend, indices erased earlier gains and traded almost 2% higher each. Sensex rose 809 points higher at 32,180 and Nifty traded at 9420, rising 222 points.
ICICI Bank, L&T, Axis Bank, Bajaj Finance, Hero MotoCorp, M&M, UltraTech Cement and Maruti were among the top gainers on Sensex pack. On the other hand, Nestle India, Bharti Airtel, Sun Pharma and Reliance Industries were among the top losers.
Here are top 10 things to know about the share market today
1. The market opened higher today as investors were optimistic over the announcement of economic relief package worth Rs 20 lakh crore, up to 10 per cent of the GDP, to help revive economic activity. PM Modi in his nationwide address on Tuesday announced a special economic package of Rs 20 lakh crore and suggested chances of Lockdown 4.0. He added that lockdown details will be made public, after incorporating inputs from the states, before May 18. Meanwhile, FM Sitharaman will announce the details of economic package in phases starting today at 4 PM.
2. Domestic indices erased opening gains by the first hour of trade, mirroring overseas trend. Experts said fear of a second wave of coronavirus infections kept market sentiments pessimistic. Market participants said indices turned volatile on Wednesday as investors were optimistic over prospects of more government stimulus although kept trades cautiously amid a spiking number of infected cases and the possibility of an extended lockdown.
3. Globally markets were trading mixed today as investors weighed upon the potential for a second wave of virus infections after reopening economies. Most markets were trading in red today, barring London's FTSE and some Asian indices. While Nikkei fell sharply, Taiwan, Kospi and SGX Nifty traded in green territory. US stocks fell after a top government scientist warned against ending the coronavirus shutdowns and reopening the economy too quickly. On Wall Street, Dow Jones Industrial Average fell 1.89%, the S&P 500 lost 2.05% and Nasdaq Composite dropped 2.06%.
4. Investors are also watching out for recently announced and upcoming earnings. Shares of Kotak Mahindra Bank, Maruti rose ahead of their Q4 earnings. Shares of Bandhan Bank, Havells India and Blue star rose 9.5%, 3.5% and 3% post earnings, while Nestle was trading as Nifty's top loser, falling 2.33% intraday as it posted weak Q4 figures. JK Papers also fell 3% after posting Q4 earnings.
5. Stock specific action was also registered in the companies that are scheduled to post results today. Maruti gained 7.5%, Kotak Mahindra Bank (5.22%), Godrej Consumer (4.73%), Siemens (3.45%), Schaeffler India (3.23%), Mphasis (2.89%).
6. Financials led the surge, with the bank and financial indices rising around 5-6%. This was followed by 3.8% rise in realty, 3.5% in metal and 3% in the auto. Pharma was the only index trading in red today.
7. Sentiments were also bullish as investors also banked upon the news that Jubilant Lifesciences plans to register, manufacture and sell remdesivir in 127 countries, including India. Shares of Jubilant Life Sciences opened at 429.95 and has since traded at this price, locked at 5% upper circuit today. The company announced that its subsidiary Jubilant Generics has entered into a non-exclusive licensing agreement with Gilead Sciences for remdesivir, an investigational drug for treating coronavirus.
8. Market capitalisation on BSE rose to Rs 125.44 lakh crore today compared to the previous session's market cap of Rs 122.69 lakh crore. This was on the back of Sensex opening over 1,000 points higher after the announcement of Rs 20 lakh crore stimulus package. Sensex opened 1,470 points higher at 32,841, while Nifty gained 388 points to 9,584. At pre-open today, Sensex rose 1400 points higher to 32,841 and Nifty climbed to 9584, rising 387 points.
9. On the currency front, Rupee, the local unit climbed 21 paise higher to open at 75.3 per dollar, on back of gap-up opening in the domestic equity market. The domestic currency had settled at 75.50 per dollar on Tuesday.
10. Investors were also concerned over the spike in coronavirus cases. India has reported total 74,281 cases, after 3,525 new COVID-19 cases recorded in the last 24 hours. Meanwhile, recoveries have risen by 1,931 cases in one day to 24,385, in the highest single-day rise. Deaths at 2,415, up 122 in last 24 hours. Worldwide, there are 43.42 lakh confirmed cases and 2.92 lakh deaths from the coronavirus COVID-19 outbreak as of today.