Sensex over 350 points, Nifty close to 10,000; Metal stock outperform

Reliance Industries, HDFC, ITC, Infosys, HDFC Bank and Kotak Mahindra Bank led the S&P BSE Sensex and NSE Nifty 50 indices in the afternoon deal. The Sensex gained 369 points to an intraday high of 33,877 and the Nifty reached an intraday high of 10,000. Benchmarks were trading largely due to gains in Reliance Industries, ITC, Bajaj Finance, Infosys and Power Grid with losses at Reliance Consultancy Services, Hindustan Unilever, Larsen & Toubro and ICICI Bank.

At 1:28 pm, the Sensex rose 352 points to 33,860 and the Nifty rose 116 points to 9,997.

Analysts and traders were evaluating border tensions between India and China and an increase in coronovirus cases, analysts said.

Meanwhile, credit rating agency Fitch said it revised its outlook in India from “stable” to “negative”, and confirmed the rating at the lowest investment grade “BBB-“. Fone said that the coronovirus epidemic has significantly weakened India’s development outlook for this year and highlighted challenges associated with a high public-debt burden.

Of the 11 sectors compiled by the National Stock Exchange, nine were trading with a 2.5 per cent gain on the Nifty Metal Index. Nifty Bank, Financial Services, Media, FMCG, PSU Bank, Private Bank and Realty Index also rose by 0.5–1.2 per cent.

On the other hand, the Nifty Auto Index topped with a decline of 0.13 per cent.

Interest in mid- and small-cap stocks was seen, as the Nifty Midcap 100 index gained 0.7 percent and the Nifty Smallcap 100 index gained 1.12 percent.

Coal India was the top Nifty beneficiary, with the stock rising 6 percent to Rs 137 today after Prime Minister Narendra Modi allocated coal blocks for commercial mining to a two-phase electronic auction process. The move was part of the government’s “Etmanabir Bharat” series, which helped the country fight the economic battle with the coronovirus epidemic.

Vedanta, Bajaj Finserv, Zee Entertainment, Bajaj Finance, Power Grid, ITC, Bharti Infratel and Tata Steel were also among the beneficiaries.

On the flipside, ONGC, Bajaj Auto, Maruti Suzuki, Nestle India, Shree Cements, Hindustan Unilever, TCS, Hero MotoCorp, ICICI Bank and Cipla lost.

Overall market breadth was extremely fast as 1,729 stocks were moving while 723 were falling on BSE.

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