The markets made a strong rally despite the global rating agency Moody’s downgrading India’s sovereign rating as sharp buying was witnessed in beaten down banking and financial stocks. Kotak Mahindra Bank, HDFC twins, ICICI Bank and Reliance remained the top index contributors. Investors’ sentiments also got a boost after Prime Minister Narendra Modi assured to get the economy back on track with the government making planned and systematic reforms.
Market ends at nearly 3-mth high; nifty near 10,000 & sensex 34,000 pic.twitter.com/vRoDx4Nw3M
— CNBC-TV18 (@CNBCTV18Live) June 2, 2020
Availability of cheap liquidity across economies is also supporting the market. The Nifty benchmark continued the weekly positive streak and ended with a healthy gain of 1.6 percent. Sector indices ended on a positive note except Nifty FMCG. On the stock specific, ZEEL, Bajaj Finserv and Bajaj Finance were the top gainers while ITC, Maruti and Coal India remained the top laggards. Going ahead market participants will keep a close on the coronavirus situation and its vaccine progress, development related to unlocking India and US-China relationship
Sensex rallied 522 points on Tuesday led by gains in banking stocks as investors seemed gathering more confidence from staggered opening of the economy by the government. After hitting a high of 33,866.63 during the day, the 30-share index settled 522.01 points or 1.57 per cent higher at 33,825.53.
The NSE Nifty jumped 152.95 points or 1.56 per cent to 9,979.10.
Bajaj Finance was the top gainer in the Sensex pack, soaring over 8 percent, followed by Kotak Bank, IndusInd Bank, HDFC, PowerGrid, Axis Bank, ICICI Bank and L&T.
On the other hand, Maruti, ITC, NTPC and Nestle India were among the laggards.
According to analysts, market opened on a positive noted as gradual easing of the lockdown boosted investor sentiment which further strengthened with the buoyancy in the global markets.
Further, traders said Prime Minister Narendra Modi’s pledge to undertake more structural reforms to change the course of the country enthused market participants.
A day after Moody”s downgraded India”s credit rating to a notch above junk status on growth concerns, Modi asserted that the country will definitely get back its economic growth and said reforms undertaken during the lockdown will help the economy in the long-run.
Globally, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a positive note, and exchanges in Europe began trade with significant gains.
International oil benchmark Brent crude futures were trading 2.95 per cent higher at USD 39.45 per barrel.
On the currency front, the rupee rebounded from the day’s low to provisionally close 18 paise higher against the US dollar at 75.36. PTI ANS MKJ MKJ
Rupee rebounds 18 paise against US dollar
The rupee on Tuesday rebounded by 18 paise to close at 75.36 (provisional) against the US dollar after Prime Minister Narendra Modi asserted that the country will get back its economic growth.
Forex traders said positive domestic equities, weak American dollar and foreign fund inflows also supported investor sentiments.
The rupee opened lower at 75.57 at the interbank foreign exchange market and moved between 75.62 and 75.36 during the day trade.
The currency finally settled at 75.36 against the US dollar, registering a rise of 18 paise over its previous close of 75.54.
A day after Moody’s downgraded India’s credit rating to a notch above junk status on growth concerns, PM Modi said the country will definitely get back its economic growth and said reforms undertaken during the lockdown will help the economy in the long-run.
Speaking at CII’s Annual Session, he said the Indian industry, has started talking about ‘getting growth back’.
“I will go beyond getting growth back to say, Yes! We will definitely get our growth back,” he said expressing confidence in Indian farmers, small businesses, and entrepreneurs for helping achieve that.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell by 0.27 per cent to 97.57.