Markets welcome government’s stimulus booster, Sensex and NIFTY rise more than 2% each

Aamar Deo Singh
Aamar Deo Singh

By: Mr. Aamar Deo Singh, Head Advisory, Angel Broking Ltd

Announcement of a stimulus package of Rs 20 lakh crore to support the Coronavirus-hit Indian economy by Prime Minister Narendra Modi on Tuesday evening had a positive impact on the Indian stock markets today. Both the indices -S&P BSE Sensex and NIFTY 50- broke the two-day long losing streak. While Nifty-50 settled at 9,383.55 points, up by 187.00 points or 2.03%, the 30-share Sensex closed up by 637.49 points or 2.03% at 32,008.61 points.

Nearly 1633 shares registered gains in today’s trading session, while 723 shares posted losses and 169 shares remain stable. The broader market rally came on the back of BSE Midcap and BSE Smallcap indices that posted gains of 1.49 percent and 1.97 percent, respectively.

BSE Capital Goods index was the biggest sectoral gainer registering a gain of 5.08 percent in today’s trading session. State-run Bharat Heavy Electricals rose 23.67 percent, while Bharat Electronics rose 8.42 percent to close at Rs 65.70. Among sectors other than Pharma and FMCG, other indices straightened out in the green. Bank Nifty led the gain by over 4 percent in addition to IT, auto, metal, chemicals, mining, infra, and energy.

RIL share price, which has long been in notice primarily for its rights issue and its raised market capital of reaching 10 lakh crore, did not do much to cheer the market sentiments today and closed at Rs. 1,492.50, up by Rs. 13.25 or 0.90%.

The following stocks impacted the indices when it reopened on Wednesday, May 13, 2020.

  • Infrastructure managed to stabilize: The Infra stocks managed to stabilize the stock market until it had shut off for trading purposes. Larsen & Toubro Limited was amongst the major infra brands on the Nifty that led to high gain over its performance on Wednesday. L& T share price rose by Rs. 51.20 or 6.28% and closed at Rs.866.00.
  •  Resurgence of Banking stocks: Bank Nifty closed at 19634.95 points, going up by 772.10 points. The Bank Nifty that illustrates the 12 largest capitalized stocks under the banking sector depicted a remarkable performance of the Indian banking sector, mainly inclusive of stocks like Axis Bank, HDFC Bank, and ICICI Bank. The private sector AXIS BANK closed at Rs. 413.95, led by gains of Rs. 27.10 or 7.01%. The stock also made a hit for intraday investors. It opened at a low of Rs. 399.60 and recorded a high of Rs. 416.45.  Moreover, ICICI BANK also showed positive signs, closing at Rs. 337.20, up by Rs. 16.00 or 4.98%.


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