MARKET WRAP: Sensex surges 835 pts, Nifty reclaims 11K; Nifty IT up over 3%

All that happened in the markets today

The Indian stock market ended over 2 per cent higher on Friday due to across-the-board buying. 

The S&P BSE Sensex ended 835 points, or 2.28 per cent higher at 37,389 levels with all the 30 constituents ending in the green. Bajaj Finserv (up 6.6 per cent) was the top gainer on the index, followed by HCL Tech (up over 5 per cent), and Bharti Airtel (up 5 per cent). 

NSE's Nifty, meanwhile, reclaimed the crucial 11,000 level to settle at 11,050, up 245 points, or 2.26 per cent. India VIX dropped nearly 12 per cent to 20.76 levels. 

On a weekly basis, both Sensex and Nifty declined nearly 4 per cent. 

All the Nifty sectoral indices ended in the green, led by Nifty IT and FMCG indexes, both up nearly 3.5 per cent, each.

In the broader market, the S&P BSE MidCap index gained around 3 per cent to 14,337 levels while the S&P BSE SmallCap index added 2.31 per cent to 14,496 levels. 

Buzzing stocks 

IT stocks rallied in the trade post Accenture's Q4FY20 earnings. While the company missed estimates for fourth-quarter sales and projected current-quarter revenue below Wall Street expectations, strong traction in the outsourcing business, strong order bookings, and encouraging management commentary were the key positives from the industry's standpoint. Nifty IT ended nearly 3.5 per cent higher at 19,629 levels. 

GMR Infrastructure gained over 11 per cent to Rs 23.55 on the BSE after the company said the GMR Group would divest its entire 51 per cent stake in Kakinada SEZ to reduce debt. READ MORE

Shares of Granules India ended over 4 per cent higher at Rs 376 on the BSE after US health regulator USFDA gave its approval for Naproxen Sodium and Diphenhydramine Hydrochloride Tablets, 220 mg/25 mg (OTC). READ MORE

Global markets

After the slide, it was the see-saw for markets on Friday, as stocks in large parts of the world headed for their worst weeks since peak coronavirus panic, and the dollar cemented its best run since April. London’s FTSE clawed up 0.2 per cent but Frankfurt’s Dax and the CAC40 in Paris were down 0.2 per cent and 0.4 per cent leaving the pan-European STOXX 600 index down more than 3 per cent, and travel stocks down over 6 per cent for the first time since June.

In the commodity market, oil prices edged higher but were set for a weekly decline due to mounting worries about the impact on fuel demand of a widespread resurgence in coronavirus infections, as well as some concern about the likely return of exports from Libya.

(With inputs from Reuters)

4:12 PM

MARKET COMMENT | Vinod Nair, Head of Research at Geojit Financial Services

Indian benchmark indices showcased steady gains throughout the course of the trading day, before finally ending up by more than 2 per cent; almost entirely recouping the losses in yesterday’s trade. This relief rally was in spite of mostly negative global cues and seemed to be based on the hope of more stimulus measures by the government. On a weekly basis, the recovery today enabled the benchmark indices to limit to around 3.8 per cent loss for the week. FPIs have net sold close to Rs 2,000 crore so far this month, which indicated the uncertain trend in the markets, after a huge month of inflows in August.

 

WEEK AHEAD

 

In spite of the rally seen today, the market is expected to remain volatile and directionless in the absence of solid triggers. Global cues will continue to be in focus as a resurgence in virus cases around the world, leads to more restrictions and more pressure on economic recovery. Traders are advised limiting overnight positions and Investors are advised to only accumulate quality stocks for the time being.

3:43 PM

SECTOR WATCH | Nifty IT ends nearly 3.5% higher

3:42 PM

MARKET AT CLOSE | All 30 constituents of S&P BSE Sensex end in the green

3:36 PM

CLOSING BELL

The S&P BSE Sensex gained 835 points, or 2.28 per cent to settle at 37,389 while NSE's Nifty ended at 11,050, up 245 points, or 2.26 per cent.

3:26 PM

MARKET CHECK

3:18 PM

Vakrangee hits 10% upper circuit on RBI's in-principle nod to set up BBPOU

The trading volumes jumped 1.5 times, with a combined 1.7 million equity shares were changing hands till 02:58 pm. There were pending buy orders for 802,000 shares on the BSE and NSE, the exchange data show. READ MORE 

3:11 PM

MARKET CHECK | ITC rises 2.5%

3:04 PM

NEWS ALERT :: Vodafone wins arbitration against India over retro tax demand of Rs 20,000 cr

>> Permanent Court of Arbitration in Hague rules that conduct of I-T Dept is in breach of 'fair and equitable' treatment. 

(Source: CNBC TV18)

2:58 PM

Global GDP shrinks 7.2% in April-June 2020 due to Covid-19: Motilal Oswal

The global real private final consumption expenditure (PFCE) declined at record 11 per cent YoY last quarter while global real gross capital formation (GCF) fell 6per cent, and global real government final consumption expenditure (GFCE) remained stagnant in 2QCY20. READ MORE

2:56 PM

Stocks that hit 52-week high on BSE today

COMPANY	PRICE(rs)	52 WK HIGH	CHG(%)
ADVANCED ENZYME	294.60	317.20	7.99
APOLLO HOSPITALS	2024.40	2038.25	3.89
COFORGE	2286.75	2304.50	8.21
GRANULES INDIA	376.60	395.00	4.44
SUVEN PHARMA	384.00	416.20	3.90

2:47 PM

MARKET CHECK :: Sensex soars over 850 pts, recovers most of Thursday's losses

2:41 PM

HEATMAP:: All Sensex constituents trade in green, led by Bajaj Finserv, up 7%

2:35 PM

Loan moratorium case: Adverse SC verdict could heavily affect banks in Q2

News reports suggest that the Mehrishi Committee has recommended the government to bear the brunt of this liability and a relief be provided to the most affected segment of borrowers. While this does bode well for banks, going by precedence, analysts say they would be surprised if the government offers any support. “As per our observation, unless it is a government announced scheme like a farm waiver, it is unlikely that such costs are borne by the government,” says an analyst with a foreign brokerage. Some are also of the view that if the government extends any relief it could turn counter-productive at this juncture. “There could be an uproar that this money could have been used for recapitalising government-owned banks or serving the public directly; why help the banks instead,” head of research at domestic brokerage points out. READ MORE

2:25 PM

MARKET CHECK :: Nifty reclaims 11,000-mark

2:24 PM

MARKET CHECK :: Sensex leaps 800 pts