Broader market rallies

Key benchmark indices continued to trade with strong gains in mid-morning trade. At 11:22 IST, the barometer index, the S&P BSE Sensex, was up 784.69 points or 2.56% at 31,474.71. The Nifty 50 index was up 245.60 points or 2.3% at 9,239.40.

The broader market outperformed the key benchmarks. The S&P BSE Mid-Cap index was up 3.1% while the S&P BSE Small-Cap index was up 3.17%.

The market breadth was strong. On the BSE, 1608 shares rose and 435 shares fell. A total of 127 shares were unchanged. In Nifty 50 index, 46 stocks advanced while 4 stocks declined.

Economy:

 

The all-India general CPI inflation declined to 5.91% in March 2020, compared with 6.58% in February 2020. The core CPI inflation eased to 4.03% in March 2020 compared with 4.08% in February 2020. Among the CPI components, inflation of food and beverages declined to 7.82% in March 2020 from 9.45% in February 2020. Softer inflation could clear the path for further monetary easing by the Reserve Bank of India.

The International Monetary Fund (IMF) on Tuesday (14 April) projected a gross domestic product (GDP) growth of 1.9% for India in 2020, amid coronavirus pandemic that has nearly stalled all economic activities across the world. However, IMF said India is among the only two major countries, which will register a positive growth rate in 2020. The other being China, for which the IMF has projected a growth rate of 1.2%.

Prime Minister Narendra Modi on 14 April 2020, extended a nationwide lockdown until 3 May to contain the spread of the coronavirus. Under the lockdown, only essential businesses - such as groceries and pharmacies - are allowed to remain open. City transport services are limited to emergency staff and those with special travel passes. All trains and flights have been suspended.

Stocks in Spotlight:

Jindal Steel & Power (JSPL) was up 0.82% to Rs 92.45 after the company bagged a 2308-ton supply order from Rail Vikas Nigam (RVNL) for development of Kolkata Metro Corporation. The company has also bagged a contract to supply 12,000 tonnes of special grade Rail Blooms to France rail hayange, France. V.R. Sharma, MD, JSPL, said that the French export order is valued at around Rs 50 crore.

Dalmia Bharat Sugar & Industries was locked in an upper circuit of 5% at Rs 64.70 after the company informed that it has started manufacturing hand sanitizers at its distillery units in Jawaharpur and Nigohi, Uttar Pradesh and Kolhapur unit in Maharashtra. The company further clarified that it may not have significant incremental revenue from the Hand Sanitizers.

Galaxy Surfactant rose 2.21%. The company said that the small intermediate feed tank blast which took place on 13 April at Tarapur M-3 Plant has led to two fatalities and three injuries. Galaxy Surfactants said that there was no fire and the company is doing everything that is required to ensure the well-being of all present at M-3 site and extending full support to the families of the victims. Contrary to what is being stated, there were not more than 67 employees at the site.

Global Markets:

Asian markets were trading mixed as the economic impact of the coronavirus pandemic continued to weigh on investor sentiment. The International Monetary Fund warning on Tuesday that the global economy is set to see its worst financial crisis since the Great Depression.

China's central bank on Wednesday stepped up policy support for its embattled economy, cutting a key rate to a record-low and reducing the amount banks must hold as reserves by around $28 billion as the coronavirus crisis slammed the brakes on growth.

In US, stocks jumped on Tuesday as optimism that the Trump administration could move to ease lockdowns from the coronavirus outbreak overshadowed worrying earnings reports from JPMorgan and Wells Fargo.

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