Market update – Nifty gains over 200 pts … Banks.. Auto ancillary stocks gains … Pharma stocks witnesses profit booking
· Nifty climbed up over 200 points lead by banking, Auto and auto ancillary stocks. However, FMCG and Pharma stocks are witnessing profit booking. RBI announced strong measures to boost liquidity in the banks, nbfc and micro finance which will be positive sentiment in the market. Strong rally in the global market, fall in USDINR and India VIX will be added fuel in the market.
· Positive factor that the India vix declined 4% to 44 after a recent high of above 50. USDINR declined half percent 76.5 and gold price corrected from a record high as traders shifted from yellow metal to equity.
· Global markets recorded smart rally as US Dow Future climbed up over 3% after a report of promising results in a study of a Gilead drug being tested for use in treating COVID-19 patients and after President Donald Trump outlined guidelines for the re-opening of the U.S. economy. Asian markets and European Future surged 2-3%.
· The Reserve Bank of India announced further measures to strengthen the economy impacted due to the Covid-19 outbreak, by cutting the Reverse Repo Rate by 25 basis points to 3.75 percent. The rupee which ended near its record low on Thursday, strengthened by over 40 paise to 76.37 against the U.S. Dollar. Yield on the 10-year bond also fell to 6.29 percent after opening at 6.41 percent.
· RBI announced TLTRO 2.0 of ₹50,000 crore to ensure that different segments of financial markets such as NBFCs and MFIs to get enough liquidity. The RBI is open to increasing this amount beyond ₹50,000 crore. At least 50% of amount must go to mid and small sized NBFCs and MFIs, the RBI chief said. RBI measured will be increase liquidity in the NBFC and Micro Finance.
· Bharat Forge Ltd. rose 18%, more than any full-day gain since Aug. 3, 2009 as India's benchmark index advanced. Trading in the company's call options was eight times the average. Trading volume was five times the average for this time of day.
· Oberoi Realty gained 14%. The company informed the stock exchanges that it has pre-paid 125 listed NCDs worth Rs 1 crore each.
Abnormal Volumes – Bajaj Finance, Zee Entertainment, LIC Housing and Kotak Bank
