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Sensex, Nifty pare gains; PSU banks surge

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Last Updated : Apr 20 2020 | 11:50 AM IST
Equity indices pared gains in mid-morning trade. The Nifty hovered near the 9300 mark. Shares of PSU banks were in demand. At 11:24 IST, the barometer index, the S&P BSE Sensex, was up 63.62 points or 0.2% at 31,652.34. The Nifty 50 index was up 21.05 points or 0.23% at 9,287.80.

In the broader market, the S&P BSE Mid-Cap index was up 0.64% while the S&P BSE Small-Cap index was up 1.43%. Both these indices outperformed the Sensex.

The market breadth was positive. On the BSE, 1430 shares rose and 712 shares fell. A total of 151 shares were unchanged. In Nifty 50 index, the breadth was negative with 17 stocks advancing and 33 stocks declining.

The undertone of the market was positive after the media reported that India will soon announce fresh relief measures and economic stimulus. Meanwhile, Maharashtra Chief Minister Uddhav Thackeray on Sunday (19 April) said industries in green zones and orange coronavirus zones will get permission to resume operations in a restricted manner. The green zones are those which have not reported any coronavirus case, while orange zones are the ones where only a few cases have been reported.

Buzzing Index:

The Nifty PSU Bank index jumped 5.23% to 1,383.95, rising for third consecutive trading session. The index has gained 8.9% from its previous closing low of 1270.85 posted on 15 April 2020.

RBI Governor Shaktikanta Das in his address to the media on 17 April asked all banks to not make any further dividend payout in view of the financial difficulties arising from the Covid-19 crisis.

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UCO Bank (up 20%), J&K Bank (up 19.93%), Central Bank of India (up 16.23%), Bank of Maharashtra (up 11.64%), Indian Bank (up 11.33%), Canara Bank (up 6.68%), Bank of India (up 6.6%), Indian Overseas Bank (up 6.21%), PNB (up 4.72%), Bank of Baroda (up 4.58%), Punjab & Sindh Bank (up 3.1%), Union Bank of India (up 2.41%) and SBI (up 1.35%) were top gainers in PSU Bank index.

Stocks in Spotlight:

Westlife Development fell 2.38% to Rs 318.20 after the company said its same-store sales growth (SSSG) declined 6.9% in Q4 March 2020. The company which runs the McDonald's chain of outlets, said sales fell 1.5% on a year-on-year basis. The quarterly business update was issued post trading hours on Friday, 17 April 2020. "The current situation is very unpredictable and evolving daily. These truly are unprecedented time. However, we continue to operate with a long-term mind-set.We are confident of our resilience, but we are not complacent. So while it is difficult to anticipate what a post Covid-19 world will look like, we are taking definitive steps to preserve our financial strength so we are well-prepared for the challenges ahead," the company said in a statement.

Goa Carbon hit an upper circuit of 5% at Rs 199.90 after the company said its Goa unit resumed operations from 19 April 2020 after taking necessary measures. The company had temporarily shut operations at its Goa Unit from 25 March 2020 in the light of of COVID-19.

NALCO rose 3.91% to Rs 33.25 after the company said it received grant order for lease agreement of Utkal-D coal block in Odisha. Department of Steel & Mines, Government of Odisha vide notification dated 16 April 2020 has issued grant order for lease agreement of Utkal-D coal block, spread over an area of 301.28 hectares under Chendipada Tehasil of Angul district in Odisha. The Utkal-D coal block was allocated to the company in May 2016. It has initial capacity of 2 million tonnes per year with a total mineable reserve of 101.68 million tonnes.

Global Markets:

Most Asian stocks were trading lower on Monday as investors continued to watch coronavirus developments. More than 2.3 million people are infected globally while at least 164,000 lives have been taken, according to data compiled by John Hopkins University.

China cut its benchmark lending rate on Monday to reduce borrowing costs for companies and prop up the coronavirus-hit economy, after it contracted for the first time in decades. The one-year loan prime rate (LPR) was lowered by 20 basis points (bps) to 3.85% from 4.05% previously, while the five-year LPR was cut by 10 bps to 4.65% from 4.75%.

In US, stocks rose on Friday, boosted by a surge in Boeing shares on President Donald Trump's plan to reopen the coronavirus-battered economy and hopes of a potential drug by Gilead to treat COVID-19.

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First Published: Apr 20 2020 | 11:25 AM IST

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