Market updates: Sensex rallies 996 points ahead of F&O expiry

Closing bell

The BSE Sensex rallied 996 points on Wednesday, led by massive gains in banking and IT stocks ahead of the expiry of monthly derivatives amid firm overseas cues.

After hitting a high of 31,660.60 during the day, the 30-share index settled 995.92 points or 3.25 per cent higher at 31,605.22.

Similarly, the broader NSE Nifty surged 285.90 points or 3.17 per cent to 9,314.95.

Axis Bank was the top gainer in the Sensex pack, soaring over 13 per cent, followed by ICICI Bank, HDFC Bank, IndusInd Bank and Bajaj Finance.

On the other hand, Sun Pharma, UltraTech Cement, Titan and Asian Paints were among the laggards.

Despite concerns over COVID-19, market participants preferred to accumulate stocks ahead of the expiry of May futures and options contracts, propelling benchmark indices, experts said.

Further, positive cues from most global markets and strong foreign fund inflows also enthused domestic investors, they said. Foreign portfolio investors purchased equities worth a net Rs 4,716.13 crore on Tuesday, provisional exchange data showed.

Bourses in Tokyo and Seoul ended with gains, while Shanghai and Hong Kong closed in the red.

Stock exchanges in Europe were trading with significant gains in early deals.

International oil benchmark Brent crude futures slipped 0.91 per cent to $35.84 per barrel.

On the currency front, the rupee depreciated 5 paise to provisionally settle at 75.71 against the US dollar.

Meanwhile, the number of coronavirus cases in India climbed to 1,51,767 and the death toll touched 4,337, according to Health Ministry data.

Globally, the number of cases linked to the disease has crossed 55.89 lakh, with the death tally at around 3.50 lakh. - PTI

European shares edge higher, focus on EU recovery plan

European shares inched higher on Wednesday as investors focused on a fresh stimulus plan for the European Union, while renewed US-China tensions over Hong Kong tempered optimism about a global economic recovery.

The pan-European STOXX 600 rose 0.4 per cent in early deals, led by banks, travel and leisure stocks, and automakers.

The eurozone stock index also gained 0.4 per cent, with the European Commission set to unveil a plan to help the EU economy recover from its coronavirus slump with a mix of grants, loans and guarantees exceeding 1 trillion euros. Click here to read more on EU markets.

Rupee settles 5 paise lower at 75.71 against US dollar

The rupee depreciated 5 paise to settle at 75.71 (provisional) against the US dollar on Wednesday, as market participants were concerned about rising tensions between the US and China amid the coronavirus pandemic.

Forex traders said the rupee was trading in a narrow range as positive domestic equities, rising optimism about a potential coronavirus vaccine and a revival of business activities were offset by a flare-up in US-China tensions.

Moreover, strengthening of the American currency overseas also weighed on the domestic unit.

At the interbank forex market, the rupee opened strong at 75.72 and gained marginal ground to finally close at 75.71, down 5 paise over its last close. Click here to read more .

Contributions to PM CARES Fund will be considered as CSR: Centre

The Centre has notified that contributions to the PM CARES Fund will be considered as part of Corporate Social Responsibility (CSR) of companies.

“In Schedule VII, item (viii), after the words ‘Prime Minister’s National Relief Fund’, the words “or Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund)” shall be inserted,” a Government notification dated May 26 said. Further, it added that this notification shall be deemed to have come into force on March 28, 2020. Click here to read more .

Reliance’s $7 billion rights rings in new trading venue in india

Reliance Industries Ltd, which popularised equities as an investment in India, is now the first to test a trading avenue in India with its record $7-billion rights issue. Click here to read in full the report on Reliance's $7-bn rights issue .

Dollar gains, yuan hits 9-month low as US-China tensions return

The US dollar edged higher on Wednesday and China's yuan hit a near nine-month low as worries about the US response to China's proposed security law for Hong Kong injected a more cautious tone into foreign exchange markets.

The US currency had fallen sharply on Tuesday as strong risk appetite encouraged investors into riskier currencies, but that sentiment was much less buoyant in early trading on Tuesday.

Some investors are betting on a rapid resumption of economic activity following the crippling coronavirus outbreak, but others worry the threat of US sanctions against China for its treatment of Hong Kong could easily worsen risk sentiment again.

Renewed protests in Hong Kong added to the nervous mood. Click here to read more on the forex market .

Nifty call: Buy on declines, while maintaining stop-loss at 9,085 levels

A security guard walks past the logo of the National Stock Exchange (NSE) inside its building in Mumbai, India, May 28, 2019. REUTERS/Francis Mascarenhas

The Sensex and Nifty began the session on a positive note in the midst of mixed Asian markets and a positive close in US markets in the last session. The Dow Jones jumped 2.2 per cent to 24,995 levels and the S&P 500 advanced 1.2 per cent to 2,991 levels in the previous session. Asian markets had a mixed reaction; the Nikkei 225 climbed 0.7 per cent to 21,419 levels, whereas the Hang Seng index slumped 0.9 per cent to 23,161 levels.

After an initial decline, the Sensex and Nifty resumed their up-move and have gained more than 1 per cent so far. The market breadth of the Nifty index is biased towards advances. The India VIX has declined 2.3 per cent to 30.7 levels. Both the Nifty mid and small-cap indices are trading in marginally positive territory. The Nifty Bank index, the top gainer, has jumped 3 per cent, backed by the Nifty PVT Bank index that has climbed 3.6 per cent. Nifty Media and FMCG have declined 0.8 per cent and 0.4 per cent respectively.  Click here to read in full the Nifty call report .

If plans fructify, NHPC will become world’s largest floating solar company

So big are its ambitions that if plans fructify, NHPC Ltd will become the world’s biggest floating solar power company and will hold the record for a very long time. The public sector power major proposes to build 2,850 MW of floating solar power plants on various reservoirs of the country. Click here to read more on NHPC's plans for solar energy .

Asian shares defy global rally as Hong Kong unrest rattles investors

Fresh political unrest in Hong Kong over Beijing's proposed national security laws in the city hit Asian share markets on Wednesday, even as optimism about the re-opening of the world economy supported a broader global stock rally.

Riot police in the Asian financial hub fired pepper pellets on protesters in the main business district, rekindling concerns about the disruptive protests seen last year that hit the territory's economy.

That capped regional stocks with MSCI's ex-Japan Asia-Pacific index losing 0.12 per cent, as Hong Kong and mainland China shares extended declines. Click here to read in full the Asian markets report

Oil falls on demand concerns, tensions over Hong Kong

Oil prices fell on Wednesday as concerns over how quickly fuel demand will recover tempered an easing of lockdowns to halt the spread of coronavirus, while US-China tensions added to negative sentiment.

Brent crude futures fell 50 cents, or 1.4 per cent, to $35.67 by 0628 GMT. US West Texas Intermediate (WTI) crude futures were down 52 cents, or 1.5 per cent, at $33.83 a barrel.

The Organization of the Petroleum Exporting Countries and producers including Russia, a grouping referred to as OPEC+, are cutting their output by nearly 10 million barrels per day in May-June to buttress prices as measures to rein in the coronavirus pandemic have slashed fuel demand. Click here to read in full the oil markets report .

Sensex, Nifty recover

The Sensex and Nifty recovered some of their early gains by midsession on Wednesday.

The 30-share benchmark was at 30,906, up 297 points or 0.97 per cent, while the Nifty was at 9,107, up 78 points or 0.87 per cent

The top gainers on the Sensex were Axis Bank, ICICI Bank, Bajaj Finance, L&T and Kotak Bank, while the laggards were UltraTech Cement, M&M, ITC, Titan and Asian Paints.

Among the BSE sectoral indices, the banking index gained 3 per cent, finance 2.24 per cent and realty 1.9 per cent, while the healthcare index was down 0.64 per cent and consumer durables 0.40 per cent.

India Ratings estimates States borrowings at ₹8.25-lakh cr in FY2020-21

With conditional provisions to borrow more, States’ borrowing is estimated at ₹8.25 lakh crore, India Ratings & Research (Ind-Ra) said on Tuesday. This estimate is based on the budget projection of 20 large States, which account for nearly 86 per cent of total revenue projections of all States together. Click here to read more .

Anant Ambani joins Jio Platforms as director

Anant Ambani, the youngest son of Asia’s richest man Mukesh Ambani, has formally joined the Reliance empire after being appointed as a director on Jio Platforms board.

He was inducted on Jio Platforms board on March 16, sources close to the development said. Read more

Daily Rupee call: Rupee might strengthen 

The pressure on State governments to support households and businesses through fiscal stimulus measures is set to increase Denis Vostrikov

The rupee (INR) opened today’s session largely unchangedat 75.67 versus Monday’s close of 75.66. As the domestic currency has been consolidating between 75.6 and 76, and is now trading near the resistance at 75.6, it might weaken from current levels.

While 75.8 can act as a support, 76 is a critical base for the local currency. But if it can regain traction and rally past 75.6, there could be a sharp rally in the rupee.

Yesterday, Foreign Portfolio Investors (FPI) bought domestic assets for a significant amount. The net inflow of FPIs on Monday was Rs 4,716 crore (equity and debt combined). Despite this, the rupee was not able to breach the key level of 75.6. If the buying continues, the local currency could break out of that level soon. Click here to read in full the daily rupee call report .

Rupee slips 8 paise to 75.74 against US dollar in early trade

Ind-Ra remains cautious over the tightening market conditions, which could have an impact on funding sources

The rupee depreciated 8 paise to 75.74 against the US dollar in opening trade on Wednesday as market participants were concerned about rising tensions between Washington and Beijing in the wake of the coronavirus pandemic.

Forex traders said the rupee was trading in a narrow range as rising optimism about a potential coronavirus vaccine and a revival in business activity was offset by the escalation of US-China tensions.

Moreover, strengthening of the American currency overseas and a muted opening of domestic equities also weighed on the local unit.

The rupee opened weak at 75.72 at the interbank forex market and then fell further to 75.74, down 8 paise over its last close.

It had settled at 75.66 against the US dollar on Tuesday. Read more .

Dollar edges higher as US-China worries resurface

The dollar edged higher on Wednesday as worries about the US response to China's proposed security law for Hong Kong supported safe-haven demand for the greenback.

The euro held gains against the dollar and the pound but faces a severe test when the European Commission is expected to release details of a financial rescue fund for the bloc later on Wednesday.

Financial markets have been caught in a tug-of-war between optimism and pessimism about the global outlook. Click here to read in full the forex market report .

Benchmark indices edge down

The benchmark indices, which opened in the green, gave up their gains to trade flat in the morning session.

The Sensex was little changed at at 30,609, while the Nifty was flat at 9,030.

The top gainers on the Sensex were Axis Bank, ICICI Bank, L&T, Kotak Bank and ONGC, while the laggards were M&M, UltraTech Cement, Maruti, ITC and Asian Paints.

According to PTI, the Sensex turned volatile after jumping over 200 points in early trade on Wednesday tracking mixed cues from global markets and uncertainty over the impact of easing lockdown restrictions.

In the previous session, the BSE barometer declined 63.29 points or 0.21 per cent to end at 30,609.30, while the broader Nifty closed 10.20 points or 0.11 per cent down at 9,029.05.

Foreign portfolio investors purchased equities worth Rs 4,716.13 crore in the capital market on Tuesday, provisional exchange data showed.

According to experts, market participants were unsure about the extent of pain in the Indian economy as Covid-19 cases continued to rise as the end day of the lockdown neared.

In the next few days, the market is likely to trade range-bound in a zig-zag fashion as traders would avoid carrying forward their open positions on uncertainty in the global markets, they said.

The number of coronavirus cases in India climbed to 1,51,767 and the death toll touched 4,337, The Health Ministry said.

Globally, the number of cases linked to the disease has crossed 55.89 lakh and the deceased tally stood around 3.50 lakh.

Meanwhile, bourses in Shanghai and Hong Kong were in the red, while those in Tokyo and Seoul were trading with gains.

Stock exchanges on Wall Street ended on a positive note in overnight trade.

International oil benchmark Brent crude futures were trading 0.17 per cent lower at $36.11 per barrel (with inputs from PTI).

Oil falls on demand concerns, US-China tensions

Oil prices fell on Wednesday on concerns over how quickly fuel demand will recover even as lockdowns ease in many countries with falling coronavirus cases, with US-China tensions adding to pressure.

Brent crude futures fell 40 cents, or 0.7 per cent, to $35.77 by 0009 GMT, after falling 1.8 per cent on Tuesday. US West Texas Intermediate (WTI) crude futures were down 49 cents, or 1.2 per cent, at $33.95 a barrel, having risen 3.3 per cent the previous session.

The Organisation of the Petroleum Exporting Countries and producers including Russia, a grouping referred to as OPEC+, are cutting their output by almost 10 million barrels per day in May-June to buttress prices as the coronavirus pandemic quarantines have slashed fuel demand. Click here to read in full the oil markets report .

Asian markets pull back as Hong Kong uncertainty weighs

Asian shares shed some of their recent gains on Wednesday as investor concerns about rising tensions between the United States and China tempered optimism about a re-opening of the world economy.

US President Donald Trump said late on Tuesday he is preparing to take action against China this week over its effort to impose national security laws on Hong Kong, but gave no further details.

Worsening relations between the world's two biggest economies will further hobble global growth, already in the doldrums due to the coronavirus pandemic worldwide. Click here to read the Asian markets report in full.

Opening bell

The markets opened in the green on Wednesday. The Sensex opened up 100 points or 0.33 per cent at 30,710. The Nifty rose 28 points or 0.32 per cent to 9,057.

Day Trading Guide for Wednesday, May 27, 2020

₹853 • HDFC Bank

₹680 • Infosys

₹191 • ITC

₹76 • ONGC

₹1423 • Reliance Ind.

₹151 • SBI

₹1943 • TCS

9046 • Nifty 50 Futures

S1, S2 : Support 1 & 2; R1, R2: Resistance 1 & 2.

Today's Pick: JK Cement (₹234.4): Buy

Investors with a short-term view can buy the stock of JK Cement at current levels.

The stock took support ₹180 in early April this year and changed direction triggered by positive divergence on the daily relative strength index and price rate of change indicator. Since late April, the stock has been in a short-term uptrend. But it had encountered a key resistance at ₹223 in mid-April and witnessed a corrective decline.

Key support at around ₹190 had cushioned the stock last week and thus helped the resumption of uptrend. While trending up, the stock had decisively breached its 21- and 50-DMAs and trades well above them. Click here to read in full Today's Pick on JK Cement .

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