Indices rally as Covid-19 news boost sentiments

Mumbai | Updated on March 31, 2020

With all major economic activities coming to a standstill, India’s stock markets are now just mirroring the US markets. The Sensex and Nifty witnessed a near 4-per-cent rally on Tuesday, as US stock markets rose by more than 3 per cent on Monday.

The first data crunching exercise by the government revealed that India might have flattened the Covid-19 curve with the ongoing strict lockdown, and this has boosted sentiments, analysts said.

FPIs continue to sell

The Sensex gained 1,028 points or 3.62 per cent to close at 29,468. The broader index Nifty gained 316 points or 3.82 per cent at 8,597. The Bank Nifty index gained 1.93 per cent at 19,144.

Foreign institutional investors (FPIs) continued their selling spree in the cash market. On Tuesday, FPIs sold stocks worth ₹3,044 crore. Domestic institutional investors bought shares worth ₹3,576 crore.

PSU major BPCL rose 15 per cent to close at ₹316. The government is privatising the company and has extended the deadline for submission of expression of interest. IndusInd Bank was yet again the top loser, down 15.14 per cent after the management told analysts about higher provisions and erosion in bank deposits.

“For now, we may see broad-based trading in Nifty in the range of 8,200 to 9,000. On the downside, the Nifty has 8,100 as support. It has 9,100 as resistance on the upside. If the index sustains above 9,100, we may see an upmove to 9,600,” said Sumeet Bagadia, Executive Director, Choice Broking.

Published on March 31, 2020

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