Sensex zooms 637 points to close at 32,009; Nifty above 9,350 – Times of India

NEW DELHI: Equity indices finished on a positive note on Wednesday with the benchmark BSE sensex rising 637 points or 2.03 per cent to close at 32,009 led by financial stocks. Similarly, the broader NSE Nifty jumped 187 points or 2.03 per cent higher to finish at 9,384.
According to analysts, domestic investors cheered Prime Minister Narendra Modi’s announcement of massive new financial incentives on top of the previously announced packages for a combined stimulus of Rs 20 lakh crore.
Axis Bank, Ultra Cemco, LT, ICICI Bank, SBI and M&M were the major gainers in the sensex pack, with their stocks rising as much as 6.96 per cent.
While Nestle India, Sun Pharma, Bharti Airtel, TCS and Hindustan Unilever were the only losers, falling up to 5.04 per cent.
On NSE, sub-indices Nifty PSU Bank, Bank and Private Bank surged as much as 6.11 per cent.
PM Modi said the package will be around 10 per cent of the GDP and “will play an important role in the ‘Atmanirbhar Bharat Abhiyan’ (self-reliant India campaign).
He further added that the special economic package will have emphasis on land, labour, liquidity and laws, and will be for “our labourers, farmers, honest tax payers, MSMEs and cottage industry.”
Analysts also said the country’s banks, which have already booked billions of rupees in provisions to cover future pandemic-related loan losses, were likely to get some relief if the stimulus package includes some credit guarantees to businesses.
“India’s response has so far been tepid compared to other key nations … the catch-up is welcome,” Deepak Jasani, head of retail research at HDFC Securities told news agency Reuters.
“Given the government’s tight fiscal position, the remaining amount is likely to come through bank guarantees to small and medium enterprises, refinance facilities and long tax breaks for industries,” he added.
Meanwhile, the rupee appreciated by 5 paise to 75.46 (provisional) against the US dollar, as fiscal stimulus by the government bolstered investor sentiment.
Foreign portfolio investors (FPIs) offloaded equities worth Rs 1,662.03 crore in the capital market on Tuesday, provisional exchange data showed.
(With agency inputs)
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