Closing Bell: Nifty ends just shy of 9,300, Sensex gains 415 pts; IndusInd Bank up 6% ahead of result

Taking Stock: Cooling off after highs! Nifty holds 9,250 as RBI announces lifeline for MFs

Indian markets extended gains after the Reserve Bank of India (RBI) announced a special liquidity facility of Rs 50,000 crore for mutual funds to calm investors jittery after the Franklin Templeton fiasco.

Strong rebound in domestic equities and a decline in the dollar index has led to a corrective move in the USDINR pair at the beginning of the current week, where the level of 77 is restricting further upside in the pair. Risk appetite in the market has got a lift as the RBI has come to ease the stress in the mutual fund industry, through its announcement of a special liquidity facility of up to 500 billion rupees. This may pave the way for some more downside in the pair towards 75.70 mark.

However after some respite, the USDINR pair will again entice buying interest as the coronavirus contagion worries engulfing the global economy continue to dominate the overall landscape, steering it on an upwards incline.

On the domestic front, all eyes will be on earnings announcements and news related to the coronavirus front. Meanwhile, monthly derivatives expiry could further add to the volatility. On the global front, Fed meeting (April 28-29th) would be on investors’ radar as update w.r.t Fed’s recent actions to combat COVID-19, as well as economic outlook, will be keenly watched.

Further, the announcement of US Q1 GDP data (on April 29th) will also be closely tracked. Nifty has been hovering in roughly 350 points range i.e. 9000-9350 for the last two weeks and we feel banking holds the key for either side break. Traders should continue with hedged bets and wait for further clarity.

Markets closed positive in sync with the global markets. News regarding the RBI liquidity facility for Mutual funds and stimulus packages from central banks around the world provided some positivity to the markets. Investors are looking towards earnings results coming out later and during the week for more clarity on the specific sectors. Credit risk concerns remain and investors are advised to remain cautious.

Market rose today despite profit taking in late afternoon trade led primarily by high quality Financials, Consumer and Staples. We witnessed select buying in Metal stocks too. The key highlight of todays trade was the spirited buying witnessed in select small and midcap stocks across sectors as HNI sought value in them.

: Benchmark indices ended higher but selling in the last hour pulled the Nifty below 9300 level.

At close, the Sensex was up 415.86 points or 1.33% at 31743.08, and the Nifty was up 127.90 points or 1.40% at 9282.30. About 1286 shares have advanced, 1076 shares declined, and 180 shares are unchanged.

IndusInd Bank, Britannia Industries, Bajaj Finserv, Axis Bank and Kotak Mahindra Bank were among major gainers on the Nifty, while losers were NTPC, HDFC Bank, M&M, Dr Reddy’s Labs and Grasim.

All the sectoral indices ended higher led by the bank, IT, auto and FMCG. BSE Midcap and Smallcap indices rose over 1 percent each.

Emkay maintained sell rating on Bharti Infratel with a target of Rs 145. The 13% EBITDA miss was primarily on account of provision for doubtful debts of Rs 1.93 bn accounted in other expenses. Energy margin continued to be volatile and stood at 5.9%, (+430bps qoq), while it was in-line with estimates, it added.

The company has resumed partially its plant operations at Silvassa, the UT of Dadra andNagar Haveli (DNH) and is taking up production as per requirements primarily to supply customers in the essential categories. This permission is valid till national lockdown date of 3rd May, 2020.

Lockdown winners: 12 stocks turned multibaggers when market recovered 21%

During the recovery period of March 23 till April 24, more than 70 percent stocks traded in the green and of which nearly 1,700 stocks reported double digit gains.

Rico Auto's plants got permission, under the revised guidelines from the concerned authorities, to start operation with due stipulations.