Shares hold firm at higher levels

Key benchmarks held firm near the day's high in mid-afternoon trade. Global stock markets rallied on hopes that governments will roll out more stimulus measures to support their economies. At 14:44 IST, the barometer index, the S&P BSE Sensex, was up 1048.88 points or 3.51% at 30,942.84. The Nifty 50 index was up 296.70 points or 3.39% at 9,045.45.

The broader market outperformed the benchmark index. The S&P BSE Mid-Cap index was up 3.56% while the S&P BSE Small-Cap index added 3.13%.

There were more buyers then sellers. On the BSE, 1786 shares rose and 442 shares fell. A total of 163 shares were unchanged. In Nifty 50 index, 47 stocks advanced while 3 stocks declined.

 

Stocks in Spotlight:

IRCTC was locked in an upper circuit of 5% at Rs 1253.75, extending its winning streak for ninth consecutive session. Shares of IRCTC have advanced 53.72% in last nine trading sessions from its previous closing low of Rs 815.60 posted on 25 March 2020.

HEG hit an upper circuit of 10% at Rs 614.95, extending its rally for third session since Friday, 3 April 2020. Shares of HEG have risen 25.73% in three consecutive sessions from its recent closing low of Rs 489.10 on Friday, 3 April 2020.

Lockdown Updates:

The Odisha government has decided to extend lockdown till 30 April from 14 April planned earlier. Schools will remain closed till 17 June, Chief minister Naveen Patnaik on Thursday.

Economy:

The Reserve Bank of India (RBI) on Thursday said the global macroeconomic outlook is overcast with the COVID-19 pandemic, with massive dislocations in global production, supply chains, trade and tourism. Financial markets across the world are experiencing extreme volatility; global commodity prices, especially of crude oil, have declined sharply. COVID-19 would impact economic activity in India directly due to lockdowns, and through second round effects operating through global trade and growth. The impact of COVID-19 on inflation is ambiguous, with a possible decline in food prices likely to be offset by potential cost-push increases in prices of non-food items due to supply disruptions.

Meanwhile, headline inflation stayed above the upper tolerance band of the inflation target band during December 2019-February 2020, led by a spike in vegetable prices. While it has peaked and vegetable prices are on the ebb, the impact of COVID-19 on inflation is ambiguous relative to that ongrowth, with a possible decline in prices of food items being offset by potential cost-push increases in prices of non-food items due to supply disruptions.

Aggregate demand is expected to be impacted adversely by likely recession in the global economy, caused by disruptions in global supply chains, travel and tourism, and lockdowns in many economies. Domestic production will also be impacted by the nation-wide lockdown. In the near-term, the challenge is to mitigate the adverse impact of COVID-19, the RBI said in its latest monetary policy report.

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