Domestic shares tracked strength in other Asian stock markets, which rallied after US President Donald Trump and the Senate reportedly agreed an economic relief package worth more than $1.8 trillion. The US stimulus package includes money to bailout industries that have been affected by the crisis.
In the broader market, the S&P BSE Mid-Cap index was up 1.27% while the S&P BSE Small-Cap index was up 0.58%.
The market breadth was negative. On the BSE, 812 shares rose and 1090 shares fell. A total of 121 shares were unchanged. In Nifty 50 index, the breadth was positive with 33 stocks advancing and 17 stocks declining.
India's forex and bond market are shut today on account of Gudi Padwa.
Derivatives:
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, fell 5.37% to 79.11. The Nifty March 2020 futures were trading at 7,954, a premium of 33.05 points compared with the spot at 7,920.95.
On the options front, the Nifty option chain for 26 March 2020 expiry showed maximum call open interest (OI) of 20.27 lakh contracts at the 9,000 strike price. Maximum put OI of 21.36 lakh contracts was seen at 7,000 strike price.
Buzzing Index:
The Nifty Metal index rose 1.4% to 1,523.50. The media reported that travel restrictions on China's Wuhan will be removed starting 8 April, which would end a lockdown that began on 23 January 2020. New confirmed cases of COVID-19 in China have reduced in the last several days.
Hindustan Zinc (up 7.28%), NMDC (up 2.92%), Hindalco Industries (up 2.7%), JSW Steel (up 2.38%), Tata Steel (up 2.28%), Vedanta (up 1.03%), Steel Authority of India (up 0.92%) and National Aluminium Company Ltd (up 0.17%) advanced.
China is the largest producer and consumer of industrial metals. Any slowdown in the Chinese economy impacts metal prices in the global markets.
Stocks in Spotlight:
Ashok Leyland on Wednesday (25 March) informed that CARE Ratings revised outlook to negative from stable on the company's long/short term bank facilities worth Rs 3700 crore while reaffirming the rating at 'CARE AA+/ CARE A1+. Shares of Ashok Leyland were trading 3.37% lower at Rs 34.45.
Sadbhav Engineering hit a lower circuit of 5% to Rs 32.65 after credit rating agency, CARE, downgraded rating on the company's long term bank facilities to A-/(Stable) from A. The long-term/short-term bank facilities of Rs 2,000 crore was revised to CARE A-; Stable/CARE A2+ from CARE A /CARE A1. Long-term non-convertible debenture - III worth Rs 170 crore and long-term non- convertible debenture - V worth Rs 44 crore were downgraded to CARE A- (Stable) from CARE A.
Bajaj Finance rose 0.93%. The company informed that it has learned about a con-call invite allegedly scheduled on 24 March 2020 between Bajaj Finance and analysts/investors was in circulation. The company clarified that it did not schedule the con-call. The con-call invite was fake and could have been circulated with malafide intent. Investors are hereby requested not to take cognizance of such false/fake circulation without verifying the same with the company or on websites of stock exchanges, it added.
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