Equity indices gained 6.5% each on Friday, with Sensex crossing above 30,000 level and Nifty back above for 8,700 mark, as market investors banked on hopes of an economic stimulus to support the economy hit by coronavirus.
Recovering from 4 sessions of straight fall, BSE and NSE indices closed 5.8% higher today. The 30-share index ended at 29,915, rising 1,629 points and the 50-share barometer closed 483 points higher at 8,745.
In a recovery led by global markets, Sensex climbed 2,129 points higher to the intraday high of 30,136. Similarly, the NSE 50-share Nifty gained 620 points to 8,778, its day's high.
Yesterday, indices extending decline for the fourth straight session and hit fresh 52-week lows before closing 2% lower in the red. Sensex closed 581 points lower at 28,288 and Nifty fell 205 points to end at 8,263.
In this week itself, Sensex and Nifty have declined 12% each. On last Friday, Sensex ended at 34,103 and Nifty at 10,023 level. Since the beginning of the year, Sensex and Nifty have fallen 27.7% and 28.5%, respectively.
India reported its first confirmed case on January 30. On that day, BSE 30-share S&P Sensex ended 284 points lower at 40,913 and NSE 50-share index Nifty50 closed 93 points lower at 12,035. Since then, Sensex has dropped 31.72% or 12,980 points to hit the 52-week low of 27,932.67 on Thursday. Similarly, Nifty has fallen 4,202 points or 34% to the year low of 7,832.55, hit yesterday.
Here are top 10 things to know about the stock market today:
- All 19 BSE sectoral indices were trading in the green. On a similar note, all the other indices traded in the green, with almost 10% rise in IT, followed by 7% gain in FMCG, 6% in metal, over 4% gain in pharma and 2% rise in other sectors.
- Of 24 out of 30 Sensex stocks and 43 out of 50 stocks on Nifty turned green. Advance decline ratio on BSE and NSE stood at 1.44 and 1.77, respectively. On, BSE, 1,449 stocks gained compared to 1,007 declining and 150 stagnant stocks. Similarly, 1,045 stocks were advancing as against 589 stocks that fell and 94 unchanged on NSE.
- Besides equity markets, bulls entered commodity as well as currency markets today. MCX Gold Futures rose 1,044 points or 2.62 % higher to 40,875. Brent crude also climbed 57 points, or 2%, to $29.04 per barrel. On a similar note, Rupee, the local unit traded 34 paise higher at 74.78 per dollar.
- Market participants turned optimistic after PM Narendra Modi announced related measures pertaining to combat the virus outbreak yesterday at 8 pm. PM Modi asked the entire nation to observe 'Janta curfew' on Sunday and urged the citizens to stay indoors and work from home as much as possible while underscoring the dangers of coronavirus. The Prime Minister also announced a financial task force to combat the Covid-19 pandemic's economic fallout.
- Traders' sentiments also turned positive after Maharashtra Health Minister's comment on banks & stock markets remaining open. Stock exchanges, clearing corporations, depositories, stockbrokers and Sebi registered participants operating through these institutions will be exempted from the lockdown, tweeted Chief Minister of Maharashtra, Uddhav Balasaheb Thackeray.
- Further sentiments strengthened over reports that government was considering a relief package for affected businesses and industries as a relief from the economic downfall from the virus pandemic. According to sources, Finance Minister Nirmala Sitharaman will hold a meeting with MSME Minister Nitin Gadkari, Animal Husbandry Minister Giriraj Singh, Civil Aviation Minister Hardeep Singh Puri and Tourism Minister Prahlad Singh Patel to assess the situation to work out a package.
- Domestic indices became bullish after European indices opened strongly higher on Friday. London's FTSE 100 rose 4.8% and, French stock market index CAC 40 gained 5.8%. Germany's DAX rose 6.9%.
- Elsewhere in Asia, except for Nikkei, all other indices turned green, with Kospi rising 7% and Taiwan index up 6%. Hang Seng and SGX Nifty gained 4.5% each and Strait Times and Shanghai Composite gained 2%. On Wall Street, Dow Jones ended 0.95% higher on Thursday, while S&P 500 gained 0.47% and the Nasdaq Composite added 2.3%. Overseas, indices turned green after free fall for days, as investors cheered actions from various governments to combat the virus outbreak.
- The number of infected cases in India has increased to 206. Overall, 22 new cases were reported across the country today. Fatalities from coronavirus in India has risen to 4.
-Covid-19 infection cases have risen fast outside India as well, hurting major economies and disrupting supply chains. Worldwide, there are currently 246,581 confirmed cases and 10,050 deaths from the coronavirus outbreak. Of these, 88,486 have recovered globally.