Market rallies on strong global cues; Nifty ends near 8,600

The domestic stock market surged on Tuesday, with the Nifty closing near the 8600 mark. Buying was broad based with metals, FMCG and pharma shares at the fore.

The barometer index, the S&P BSE Sensex, surged 1028.17 points or 3.62% at 29,468.49. The Nifty 50 index spurted 316.65 points 3.82% at 8,597.75.

Domestic shares mirrored gains in other global stock markets after data showed that manufacturing activity in China rebounded from record lows in March. Stocks also drew support from signs that the lockdown across much of Europe could be starting to have the desired effect of slowing the rate of new confirmed cases.

BPCL (up 13.56%), Gail India (up 8.63%), ONGC (up 7.34%), UPL (up 6.99%) and Hindalco Industries (up 6.87%) were the top gainers.

Eicher Motors (down 2.70%), Cipla (down 2.18%), Zee Entertainment Enterprises (down 1.51%), Bajaj Finserv (down 1.31%) and Bajaj Finance (down 1.24%) were major losers.

In the broader market, the S&P BSE Mid-Cap index advanced 2.49% while the S&P BSE Small-Cap index added 2.98%.

The market breadth was strong. On the BSE, 1438 shares rose and 752 shares fell. A total of 162 shares were unchanged. In Nifty 50 index, 44 stocks advanced while 6 stocks declined.

Buzzing Index:

The Nifty Metal index rose 5.18% to 1,585.75, reversing Monday's 3.03% decline.

Among the index constituents, Steel Authority of India (up 13.76%), Hindalco Industries (up 8.79%), Hindustan Zinc (up 6.29%), Tata Steel (up 6.28%), Hindustan Copper (up 5.94%), NMDC (up 3.9%), National Aluminium Company (up 3.74%), Jindal Steel & Power (up 2.5%) and JSW Steel (up 2.42%) advanced.

Vedanta jumped 5.11%. The company said its mining operations, which manufacture essential commodities, and the oil & gas business will continue across all sites during the lockdown imposed by the Centre to contain the spread of coronavirus.

Stocks in Spotlight:

IndusInd Bank crashed 14.62% to Rs 351.40. The bank in a conference call hosted yesterday informed that it has seen a withdrawal of 10-11% of its deposits, largely led by a state government. Wholesale and retail deposits too saw a decline. The lender said it has replaced the outflows via various means such as long duration refinance/forex borrowings swapped to the Indian Rupee. The lender also said that the moratorium granted by the RBI should help its portfolio in various segments.

Reliance Industries (RIL) advanced 7.65% to Rs 1111.30. The company said its board will meet on 2 April 2020 to consider raising funds by issuing listed, secured/unsecured, redeemable non-convertible debentures (NCDs) on private placement basis in one or more tranches/series.

Gujarat Narmada Valley Fertilizers & Chemicals surged 9.55% to Rs 114.15. GNFC said that considering the prevailing unprecedented critical situation caused by the Corona Virus (COVID-19) pandemic / epidemic and prevailing nationwide lockdown situation, the operations of nine plants of the company situated at Bharuch complex are under complete shutdown.

Britannia Industries gained 8.35% at Rs 2681.10 amid bargain hunting after a recent slide. The FMCG company informed that in view of the COVID-19 pandemic, the company has taken various measures (including work from home) to ensure safety and well-being of all the employees and is ensuring compliance with the directives issued by the central government, state government and local administration in this regard. The company manufactures food products which are considered as essential commodities for the consumers. However, due to lock down ordered by the Government of India across the country to contain the spread of COVID-19, the operations of the company have also been disrupted.

Aster DM Healthcare gained 2.38% to Rs 94.70 after the company announced the closure of its loss making pharmacies in Kuwait. The company said that it intends to exit from the Kuwait market by shutting down the loss making operations of the pharmacies. The drug maker expects to close all Kuwait operations by 31 May 2020. The company said it has been operating pharmacies in Kuwait through its subsidiary, Aster Kuwait Pharmaceuticals and Medical Equipment Company W.L.L (the subsidiary). As on 31 March 2020, the company's subsidiary contributed Rs 33.26 crore or 0.42% towards Aster DM Healthcare's consolidated revenues. The business had a negative net-worth of Rs 26.58 crore.

G.G. Engineering hit 5% upper circuit at Rs 30.90. The manufacturer of electric power generators said that the company has obtained order for supply of supply, installation, operation and maintenance of 25 Plastic Bottle Crushing Machine' with advertisement right for 5 years at various Location of 16 stations over Mumbai divisions from the Western Railway, Mumbai Central for the disposal of plastics in an efficient way.

Global Markets:

European shares were trading higher while most Asian stocks advanced on Tuesday as China's official manufacturing Purchasing Managers' Index (PMI) for March came in better than expected.

China's official manufacturing PMI bounced to 52 in March, up from a record-low 35.7 in February.

In US, stocks surged on Monday, rebounding from a deep rout triggered by the coronavirus pandemic. The rebound was led by an 8% pop in Johnson & Johnson after it announced a vaccine candidate for the coronavirus.

US President Donald Trump extended the timeline for social distancing guidelines to April 30, which many believe will reduce economic damage in the long run.

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