Benchmarks Sensex and Nifty erased early losses and closed marginally lower on Friday, in line with the overseas trend, as investors anticipated positive measures in the 3rd tranche of announcements for the economic relief package.
Finance Minister Nirmala Sitharaman will hold a third media briefing on Friday to announce more measures as a part of Rs 20 lakh crore special economic stimulus announced by PM Modi earlier this week.
Ending the week with three consecutive negative sessions, Sensex closed 25 points lower to 31,097, while Nifty ended 5 points lower at 9,136.
Multiplex stocks PVR and Inox Leisure declined in Friday's trade as businesses continue to struggle under the virus-induced lockdown.
While PVR stock fell 3.17% to Rs 859, Inox Leisure dipped 3.55% to Rs 194 today.
Multiplex stocks have been badly hit from the Covid-19 induced lockdown as theatre halls were the first to be shut and could be the last to be opened after the end of the current shutdown. Brokerages also expect recovery to be slow and occupancy levels to be lower, post the restriction ease as well.
Investors also took cues from the latest released and upcoming March quarter earnings as well. Shares of Aarti Drugs climbed 4% intraday, Tata Chemicals rose marginally higher, ahead of results today. On the contrary, Cipla shares were falling by 1%, followed by Crompton Greaves Consumer, M&M Finance, that were trading marginally lower, ahead of reporting March quarterly results, later today.
Similarly, while Indian Energy Exchange gained 7.33%, Mannapuram Finance gained 7%, Zensar Technologies rose 4.99% and Oracle gained over 2% intraday on back of better than estimate earnings. Indiabulls Real Estate fell 4.2%, followed by Biocon shares that fell 4% and Tata Consumer Products that was down 3.76% intraday after the companies posted weak results for March quarter.
Airline stocks were gained today on hopes of relief package from the government. While SpiceJet climbed 4.94% intraday, IndiGo rose 2.48% after recovering from their earlier declines.
Globally, markets turned green, with European indices reversing the trend by the afternoon session. In Asia, Nikkei, Kospi, SGX Nifty, Strait Times and Taiwan were trading in the green, while Hang Seng and Shanghai traded in the red.
US indices closed higher on Thursday led by financial stocks as investors looked past weak jobs data and remarks by President Trump on US-China trade relations.
Trump threatened to cut off the whole relationship with China in response to the spread of the novel coronavirus across the world that has killed nearly 300,000 people, including over 80,000 in America.
Domestic market indices fell in Friday's opening bell, led by a heavy sell-off in index heavyweights HDFC Bank, ICICI Bank and Reliance Industries. Investors traded cautiously amid the spiking number of COVID-19 cases. Uncertainty over the effectiveness of the fiscal stimulus package also kept local sentiments negative. Extending decline for the second consecutive session, Sensex earlier opened 180 points lower to 30,930, while Nifty traded 53 points lower at 9,098.
Markets overseas were mixed in early session as fears of a second wave of infections overshadowed prospects of re-opening of economies. Besides this, remarks from President Donald Trump, threatening to cut off relations with China, also kept markets pessimistic.
On the currency front, Rupee traded in a narrow range and later closed flat at 75.56 per dollar.
Meanwhile, Brent crude futures in the commodity markets were trading 1.47% higher at $31.59 per barrel as IEA forecasted lower global stockpiles in H2 2020, offsetting fears over the resurgence of coronavirus in some countries.Share Market Update: Sensex ends 25 points lower, Nifty at 9,136; M&M, Zee Ent, Axis Bank top losers