Bulls take charge as Sensex surges by more than 900 points

Domestic benchmark indices have ended the week on a positive note today as Sensex zoomed by 3.22 per cent which is 986.11 points to be at the level of 31,588.72 while, Nifty went up by 3.05 per cent which is 273.95 points to the level of 9,266.75.

With the deepening effects of COVID-19 on the economy being visible, various world organisations continued warning on reduced economy growth for the future. Acknowledging the fears, the markets had been awaiting RBI’s announcement of fiscal help for supporting the economy as well as imbedding a hope of achieving normalcy in businesses. Hence, in today’s press conference, Reserve Bank of India (RBI) Governor Shaktikanta Das has announced a few measures. As a consequence of this, investors regained their confidence resulting into banking and NBFC stocks witnessing a rally, along with a majority of real estate stocks. Profit booking was seen in defensives such as FMCG stocks and pharmaceutical stocks, which were the major beneficiaries until now. A shift in leadership from defensives to high beta stocks is an ominous sign of bulls taking control of the markets. This subsequently suggests that markets may inch up in the upcoming weeks if global markets are conducive.  

The stocks responsible for Sensex rally consisted of the majority of banking stocks such as Axis Bank-up by 13.45 per cent, ICICI Bank-up by 9.89 per cent, IndusInd Bank-up by 9.13 per cent, Kotak Mahindra Bank-up by 4.96 per cent, HDFC Bank-up by 3.33 per cent, SBI-up by 193.30 per cent, etc. Others in the list were automaker Maruti gaining by 7.36 per cent, TCS-up by 5.32 per cent, M&M-up by 1.78 per cent, etc.

Sensex losers included Nestle India which fell by 3.15 per cent, Hindustan Unilever-down by 2.14 per cent, Tech Mahindra-down by 1.60 per cent, HCL Technologies-down by 0.94 per cent, etc.

As for sectoral indices, responding to RBI’s announcement, Bankex gained the most among others by 6.83 per cent, followed by Auto which closed up by 4.67 per cent and Realty which went up by 3.70 per cent. Except for FMCG and Healthcare which slipped by 0.99 per cent and 0.69 per cent, respectively; all others closed in green on Friday.