Market update – Banks, NBFC, Microfinance stocks gains as lifted partial lockdown in Rural Area
· Investors on Dalal Street rebuffed the dire forecasts of virtually no growth in 2020 and took positives from the reports that businesses could see phased opening from April 20, pushing benchmark indices higher.
· Prime Minister Narendar Modi indicated that areas that will limit virus spread and not be in the hotspot category may be allowed to open up select necessary activities from April 20. They include businesses that employ large numbers of people.
· Nifty climbed up nearly 3% as lifted in bluechip stocks, L&T was the biggest gainer riding on three ‘large’ awards, jumping 4.06 per cent to Rs 900 while Sun Pharma and Axis Bank also gained about 4 per cent each. HUL, UltraTech Cement and IndusInd Bank were other major gainers. RIL, ICICI Bank and HUL were the top Sensex contributors in early trade.
· Market hope of short covering after announced partial lockdown in the rural area.
· Shares of Wipro climbed 2 per cent to Rs 193.40 ahead of its quarterly results that are scheduled for later in the day.
Barring Nifty Media that dipped 0.12 per cent, all sectors on NSE traded with gains. Nifty Pharma gained for the sixth straight session, up 2.90 per cent while Nifty Private Bank and Nifty FMCG gained over 2 per cent each.
· State Bank Of India’s 200 Call: Premium rises 26.2 percent to Rs 9.85. The contract has added 12.2 lakh shares in Open Interest.
· ICICI Bank’s 360 Call: Premium rises 51.78 percent to Rs 19.20. The contract has added 6.1 lakh shares in Open Interest.
· Sun Pharma’s 500 Call: Premium rises 33.8 percent to Rs 28.70. The contract has shed 91,250 shares in Open Interest.
· Globally, Asian share markets took a breather on Wednesday as warnings of the worst global recession since the 1930s underlined the economic damage already done even as some countries tried to re-open for business. Japan's Nikkei was still off 0.5 per cent while US Dow Future declined 0.3%.
· Abnormal volumes – Havell’s India, Shriram Transport, Bajaj Finanace
· NBFC and Micro-finance stocks recovered from the intra-day low after the government announced partial lockdown in the rural area. Market hope that the recovery will be back again. Ujjaivan, Bandhan Bank, Cholamandalam Invesement, Shriram Transport may positive
