Market Wrap: Sensex up nearly 500 pts after US Fed's move, Nifty ends at 11,831; Jet Airways soars 93% : Podcast: Business Today
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Market Wrap: Sensex up nearly 500 pts after US Fed's move, Nifty ends at 11,831; Jet Airways soars 93%

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June 20, 2019









Key stock indices recovered from early fall today backed by buying across sectors and rose as much as 1.20% by the closing bell.



While Sensex ended the days trade at 39,601, up 488 points, Nifty closed at 11,831, gaining 150 points. Sensex touched an intraday high of 39,638.64 and Nifty reached 11,843.50 as its day's high. 42 out of 50 stocks traded in the green on the Nifty and only 4 out of the 30 stocks were down on Sensex by the closing bell.



Sectorally, all the indices ended in the green, with major bullish pull seen in Auto, Pharma and Banking indices.



Yes Bank was the biggest gainer among Nifty50 stocks, rising 11 percent followed by Indiabulls Housing, Sun Pharma, IndusInd Bank and L&T. However, UPL, Wipro, Adani Ports, Britannia and Tech Mahindra were the top losers.



After a bearish opening, Indian equity markets turned positive, amid strong cues from the global markets after the US Fed hinted at a rate cut in the near future.



IT stocks were down in early trading session after Reuters reported that US plans to cap H1-B work visas. Although India's foreign ministry said that no official report or statement from the U.S. on H-1B visa issue has been received.



Now let's quickly go through the stock highlights of the day. IndiaMart became the first company to enter IPO market in Modi government's second tenure,Yes Bank share price fell to double digits for the first time in five years, Adani Green Energy's subsidiary, received Letter of Award from Solar Energy Corporation of India (SECI), RBI imposed a fine of Rs 10 lakh on South Indian Bank for violating norms regarding bank guarantees, IL&FS Engineering and Construction received approval from the Ministry of Road Transport and Highways (MoRTH) , for revival/ restart of the road project, and Tech Mahindra signed multi-year contract with Airbus for Cabin and Cargo design engineering.



Meanwhile, shares of Jet Airways witnessed a massive rebound and rose 133% to its day's high.



Commenting on the market view for today, Vinod Nair, Head of Research of Geojit Financial Services said, "series of meetings by PM and FM to draw a road map for 100days agenda and budget, provided a confidence to the market. Additionally, GST council is likely to meet and review its position."



Meanwhile, President Ram Nath Kovind told lawmakers today that India will implement more reforms to boost economic growth, including higher spending in farm sector and easing collateral-free loans to small businesses.



"Inflation is low, fiscal deficit is under control and foreign exchange reserves are rising. Now India is moving towards becoming the world's fifth largest economy," President said while addressing the joint session of parliament, ahead of the annual budget.



Traders said hopes of a breakthrough in US-China trade talks also boosted global investor sentiment. As per market participants, this could also be the start of a pre-budget rally.



On the currency front, rupee opened strong at 69.47 at the interbank forex market, but lost ground and later and slipped 11 paisa at 69.52. As per forex dealers, foreign fund outflows, weak opening of domestic equities and rising crude oil prices weighed on the local unit.



The global oil benchmark Brent crude futures were trading 1.29 per cent higher at 62.62 per barrel, and later advanced by 2.67 per cent to $63.47 per barrel amid a flare up in geopolitical tensions in the Middle East.



On the global front, European equity markets were trading in the green in early deals, with Dax Index gaining 1% and both FTSE and CAC Index gaining half percent each.



Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended significantly higher on Fed decision and hopes for positive US-China trade talks in the upcoming G20 meeting. Wall Street too, closed on the green yesterday, with US Future gaining 0.7%.