Investors look beyond Covid cases' surge; Sensex zooms 790 pts; banks rally

Stock market update: Expectations that Covid-19 cases could soon peak in the country, especially in the economically important state of Maharashtra, boosted investor confidence on Dalal Street on Wednesday. Besides, healthy buying in the financial counters ahead of the monthly expiry of the F&O contracts of April due tomorrow further lifted benchmark indices 1.6 per cent on Wednesday. Today was the third consecutive day of gains at the bourses.

Maharashtra’s stabilising Covid cases could be a precursor to India's curve flattening over one-two months, believes Amish Shah, India equity strategist at BofA Securities. Meanwhile, CLSA opines that the surge in Covid cases in Maharashtra may taper in May as the state is in its fourth-month of the second wave. This, it believes, will be positive for the markets. READ MORE

In effect, the BSE barometer of 30-shares zoomed 790 points to end the day at 49,734 levels. In the intra-day deals, the index had vaulted 857 points to hit a high of 49,801. On the NSE, the broader Nifty50 index reclaimed the 14,800-mark for the first time since April 9 and closed at 14,864, up 211 points. It hit a high of 14,890 earlier today.

Bajaj Finance, up 8 per cent, was the top Nifty gainer today after the consumer durable financier, on Tuesday, reported a 42 per cent jump in consolidated net profit at Rs 1,347 crore for the fourth quarter of the fiscal ended March 2021. Brokerages remain mixed on the stock as expensive valuations, analysts say, may overweigh possible strong growth in AUM going-forward. READ MORE

That apart, Eicher Motors, IndusInd Bank, Bajaj Finserv, ICICI Bank, Kotak Mahindra Bank, SBI, and Bajaj Auto were the other outperforming stocks on the 50-share index. 

On the downside, Britannia Industries, Hindalco Industries, HDFC Life, Nestle India, HCL Tech, and Tata Steel were the top laggards in a firm market. The stocks ended lower between 0.5 per cent and 2 per cent.

Broader markets, however, witnessed relatively leaner trade today. The S&P BSE MidCap index ended 0.99 per cent up while the S&P BSE SmallCap index added 0.7 per cent.

Among key sectoral indices, the Nifty Realty index dropped 0.6 per cent amid fears that the second wave of Covid-19 may hit housing demand. That apart, the Nifty Metal and Pharma indices slipped 0.3 per cent each.

On the contrary, the Nifty Bank index soared 3 per cent on the NSE today and ended at 33,723. The Nifty Private Bank, PSU Bank, and Financial Services indices too climbed over 2.5 per cent each. 

Global markets

World shares cosied up close to record highs and the dollar and global bond yields nudged up on Wednesday, as traders waited to see if the U.S. Federal Reserve utters the dreaded ‘T’ word later - tapering of its mass stimulus programme.

Japan's Nikkei ended 0.2 per cent up, South Korea's Kospi declined 1 per cent, and Australia's S&P/ASX200 index gained 0.44 per cent.

European stocks inched higher on Wednesday on expectations of a bumper earnings season following strong results from Deutsche Bank, Lloyds Banking Group and other lenders.

The pan-European STOXX 600 index rose 0.1 per cent in early trading, with the region’s banking sector up 1.1 per cent.

(With inputs from Reuters)

4:14 PM

TECH VIEW :: Sumeet Bagadia, Executive Director at Choice Broking

On the technical front, the Nifty Index has given a breakout of its upper band of Falling Wedge formation, which signifies a bull run in the counter. Moreover, the index has given closing above 21- Days Moving Averages, which suggests strength in the index. Additionally, the MACD indicator is trading with a positive crossover which suggests a positive rhythm in the counter. At present, the support has shifted to 14600 levels while an upside resistance seems at 15000 levels.

4:13 PM

TECH VIEW :: Rohit Singre, Senior Technical Analyst at LKP Securities

One more gap up session with open & low same hit the fresh breakouts on the daily chart and closed a day at 14850 with good gains of one & half per cent. The index has given descending channel pattern breakout on the daily chart which hints if current levels are held then we may see good northward move in the near term, immediate support is shifted to 14750-14650 zone & resistance is placed at 14950-15000 zone also fresh breakout again can be seen above 15k mark which acted previously as strong hurdle

4:07 PM

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

Superior Q4 results and vaccine optimism buoyed domestic markets to trade on a positive footing for the third consecutive day ahead of the Fed interest rate decision.  Strong buying interest was seen in banking and auto stocks with enhanced business prospects which is likely to be maintained

4:04 PM

MARKET RECAP :: S Ranganathan, Head of Research at LKP Securities

Bulls went on a rampage with Banks & Autos especially the Two-Wheeler stocks being sought after in what turned out to be a bullish session of trade through the day. The HDFC twins & Bajaj twins lent good support to the Indices with the broader market displaying strength across sectors

3:58 PM

Currency Outlook :: Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services

It is an eventful day, with Fed policy and Biden's session of Congress. Ahead of both these events, dollar index is showing tentative signs of recovering, however, FII inflows into local stocks are weighing on USDINR spot. Technically, USDINR spot has formed a descending channel, and if tonight's Fed message isn't as hawkish as the market is expecting then we may see a further drop in spot. 74.25 is an immediate support, until the spot remains afloat we may see prices moving towards 75 zone amid severe covid situation

3:56 PM

BSE Snapshot :: Stocks with highest turnover

3:54 PM

BSE snapshot | Advance to decline ratio stands at 1.5:1

3:52 PM

ICICI Bank, HDFC twins remain top contributors towards Sensex's rally today

3:50 PM

Rupee Closing

Rupee ends higher at 74.30 per US dollar vs Tuesday's close of 74.65/$

3:48 PM

Sector of the day :: Bajaj Finance's Q4 earnings fuel rally in NBFCs

3:46 PM

Sector of the day :: Nifty Bank index rises 3%

3:43 PM

Sectoral trends on the NSE

3:41 PM

Sensex Heatmap :: Bajaj Group stocks, IndusInd, ICICI Bank lead

3:34 PM

CLOSING BELL

The BSE barometer of 30-shares zoomed 790 points to end the day at 49,734 levels. In the intra-day deals, the index had vaulted 857 points to hit a high of 49,801. On the NSE, the broader Nifty50 index reclaimed the 14,800-mark for the first time since April 9 and closed at 14,864, up 211 points. It hit a high of 14,890 earlier today.

3:22 PM

Grab's Nasdaq debut to test its $40 bn valuation, set roadmap for SPACs

Singapore's Grab more than doubled its valuation to $40 billion in about a year as part of the world's largest SPAC deal, but maintaining that level after its U.S. debut will be a test not only for investors but also for firms eyeing similar listings.

 

Earlier this month, Southeast Asia's biggest ride-hailing and delivery firm, agreed to merge with a special purpose acquisition company (SPAC) backed by Silicon Valley investor Altimeter Capital Management. READ MORE