The bulls were a force to reckon with on Dalal Street in Wednesday’s trade, as firm global cues and hope of the government stimulus package lifted investor sentiment.
Reliance Industries rallied the most in over a decade on reports that Facebook might pick up a 10 per cent stake in Reliance Jio. Kotak Mahindra Bank, HDFC Bank and Maruti Suzuki jumped in double digits amid heavy buying.
At close, the 30-share pack Sensex was up 1,862 points, or 6.98 per cent, at 28,536 while the broader Nifty rose 517 points, or 6.62 per cent, to 8,317.
The recent announcements from the US Fed and rising hopes of a fiscal stimulus package from the US government have lifted sentiments.
“Going forward, we expect volatility to remain high in the near term, and any sustainable rally will largely depend on how effectively we can contain the spread of Coronavirus,” said Ajit Mishra, VP for Research at Religare Broking.
Here is a lowdown of the movers and shakers of Tuesday’s session on Dalal Street:
Investors richer by Rs 4.7 lakh crore
Domestic equity investors got richer by Rs 4.70 lakh crore as the total market capitalisation of the BSE-listed firms jumped to nearly Rs 1,08,40,165 crore during the session.
RIL smiles as Facebook dials Jio
Shares of Reliance Industries jumped 14.65 per cent to Rs 1,081 amid reports that Facebook was holding discussions to take a multi-billion-dollar stake in its telecom arm, Reliance Jio. With this, the company again became the most valuable firm in India, piping TCS.
RIL, HDFC twins lead charge
Heavy buying in Reliance Industries and HDFC twins was the biggest factor that lift the equity indices higher. These three scrips contributed over 1,000 points in Sensex.
VIX drops 8%
India VIX, also known as the fear gauge of the market, fell 7.94 per cent during the session to settle at 76.96, indicating volatility has come down relatively.
All sectoral indices in the green
All sectoral indices closed the day in the green. Nifty Financial Services was the biggest gainer, up 9.69 per cent, while Nifty Private Bank and Nifty Bank indices added over 8 per cent each. Among other major gainers were Nifty Auto, Nifty Media and Nifty Metal indices.
Broader indices lag
Broader market indices underperformed their headline peers. Nifty Smallcap index jumped 3.3 per cent to 3,449 while Nifty Midcap gained 3.32 per cent to 11,478 and Nifty500 rose 5.69 per cent to 4,260.
33 stocks give ‘buy’ signals
As many as 33 stocks gave ‘buy’ signal on BSE as they crossed above the signal line on the MACD indicator. They included Dish TV, Oil India, J&K Bank, Parag Milk, JSW Energy, Triveni Glass and Texmaco Rail, among others.
UBS upgrades JSW Energy
Shares of JSW Energy gained 1.19 per cent to Rs 46.90 after UBS upgraded the scrip to ‘buy’ from ‘sell’. It maintained the target at Rs 68, saying too much pessimism seems to be priced in.
UBS cuts TaMo’s target
Shares of Tata Motors jumped 2.33 per cent to Rs 70.20 as UBS maintained ‘buy’ but cut the price target to Rs 130 from Rs 285. It said JLR volumes in FY21 may now decline 5 per cent instead of 3 per cent growth projected previously.
Astral Polytechnik jumps 4%
Shares of Astral Polytechnik gained 4.17 per cent to Rs 838 after Investec maintained a ‘buy’ rating with a price target of Rs 1,357. It said adverse impact from the lockdown would be capped even if it lasts longer as the piping division remains strong.