Markets see third consecutive Bull Run; FM announces Rs. 1.7 lakh stimulus package


New Delhi, Delta News : Aamar  Deo Singh, Head Advisory, Angel Broking said Giving a fresh breather to investors, stock markets today enjoyed their bull run for the third consecutive day. The markets seemed to be bumpy initially, however, were back with their rally driven by banking stocks. Other Asian Markets responded differently to the U.S. Senate’s $2 trillion stimulus package. Nikkei 225 fell by 4.51% and Hang Seng was down by 0.74% while Shanghai Composite Index was down by 0.6%.

Economic Stimulus:

Indian markets had been anticipating a strong stimulus package to counter the economic impact of coronavirus. As the ball rolled in the U.S. Senate for a $2 trillion package, the sentiment also remained positive across the domestic markets. The Indian government had also announced to launch its economic package worth Rs. 1.7 trillion today and was well received by the market. However, the lack of strong measures for businesses in the announcement saw some investors drawing out from the market. The market was net positive by the closing bell and had a bullish sentiment.

Top Performers:

A total of 293 companies added Rs. 4.43 trillion to the market at BSE. Sensex itself saw just 4 declines with 26 advances. IndusInd Bank outperformed every other stock during the Thursday’s trade. This year, the stock had fallen flat from Rs. 1,484 on 1st January to as low as Rs. 252.36 on 24th of March, 2020. Gaining Rs. 138.70 on Thursday, IndusInd Bank registered a strong advance of about 46%. The stock is still down 74% YTD and there is more room for growth.

Apart from it, auto stocks such as Bajaj Auto and Hero MotoCorp rose by 8.63% and 8.09% respectively.  Bajaj Finance, Kotak Bank, and HDFC Bank registered a gain of 8.06%, 7.66%, and 6.76%.  L&T was a key volume driver today and rose more than 9% during the day trade.

Top Losers:

At Sensex, only Maruti Suzuki, Tech Mahindra, Sun Pharma, and RIL corrected by 3.05%, 2.60%, 2.45%, 0.60% loss respectively. Nifty 50, on the other hand, saw 11 declines. The maximum loss was seen by GAIL as it traded 3.24% lower by the closing bell. Adani Ports also paired a loss of 2.90% while HCL Tech, JSW Steel, and Tata Steel fell by 2.16%, 1.32%, and 0.82% respectively. Hindalco stayed put with last trading price of Rs. 94.55.

The Way Ahead:

Tomorrow’s trading day will be quite critical as we will get to know the true impact of individual stimulus packages. While the domestic market will react to the relief package announced today, the U.S. House of Representatives will also consider the bill passed by its Senate. These developments will give the cues around how the domestic and international market will get shaped.

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