Today, Sensex slipped 469 points closed at to 30,690 levels while the Nifty50 index dipped around 8,964 levels down by 1.63%.
The major reason for the bearish market is the news of lockdown extension and weak global market signals.
Apart from that a rise in crude prices also affected investor sentiments. Let’s have a look at the 3 major points that affected today’s market.
#1. Extension in Lockdown
On April 11, Prime minister of India held a video conference with the Chief Ministers of all the states. Maximum states were demanded extension of lockdown and demanded more financial support to fight with the pandemic.
Some states like Punjab and West Bengal had already extended the lockdown to 30 April.
Prime Minister is likely to address the nation on April 14 and fear of extension in the lockdown dented investors sentiments.
#2. Asian Counterparts Turns Red
Asian stock markets dipped after the news of crude oil spiked to $1 barrel. This happened when OPEC and other oil producers decided an unprecedented production cut of approx. 10 million barrels.
Japan’s Nikkei 225 index lost -2.33%. South Korea’s Kospi fell -1.87% whereas China’s SHCOMP down by -0.87%.
Stocks also shed in the Singapore Stock market to -0.54%, Indonesia to -0.57% and Taiwan to -0.54%.
#3. Crude Oil Spikes
A couple of hours after the markets opened, OPEC, Russia and other oil producing nations consensus on cutting the oil production in response to reduced demand due to coronavirus crisis.
They decided to reduce production to approx. 10 million barrels (1/10th of global supply).
This resulted in crude prices hike to more than $1 per barrel.
What to expect tomorrow
All the Stock exchanges will remain closed on April 14 because of Dr.Baba Saheb Ambedkar Jayanti.
Investors should play defensive amid market’s volatile behavior.
However, PM Modi’s address to nation will give better clarity for the upcoming trading week.
9 April Stock market today, Sensex crosses 31K, Top 5 factors that sustained the rally
Indian stock market shines again reaching their 3-weeks high. Sensex touched 31159.62 points gained 1,265.66 points and NSE is 9,111.90, up by 363.15 points.
Robust buying in auto, pharma and FMCG stocks led the rally. Investors hope that the COVID-19 pandemic is going to reach its peak all over the world. Thus, the positive sentiments drove the market to a new high.
Tog gainers – Mahindra and Mahindra, Maruti, Titan, Bajaj Finance, HDFC, and Bajaj Auto
Top losers – Tech Mahindra, IndusInd Bank, HUL, and Nestle.
Top 5 factors that drove today’s rally are as below.
#1. Stimulus Package Created Hope
The Indian government is expected to announce a second stimulus package of around $13 billion soon. This stimulus package will provide financial support to small and medium businesses to recover from the coronavirus crisis.
There are chances that a separate package can be announced for bigger companies.
Indian government has also outlined a $22.6 billion economic stimulus plan to help poor section during this 21 days lockdown.
#2. Trump likely to reopen the U.S. economy with a “Big Bang”
Another big factor that pushed the markets all over the world is latest remark by U.S. President Donald Trump.
Donald Trump on April 8 said that he would like to reopen the U.S. economy with a “big bang”.
There’s no clear answer by what time this relief will come but it could happen in four to eight weeks.
#3. Sector-Based Rally
Today’s rally was purely sector-based with auto, FMCG, pharma, and financial stocks were top gainers.
All-round buying in these sectors stage a comeback with a hope of relief package announced by the government to help Micro & Small Enterprises.
In the last one month period, the pharma sector has risen 15%, followed by a 3% rise in FMCG. Nifty Pharma has risen 10.87% since the beginning of 2020.
At least 8 out of 15 stocks in Nifty auto closed 7% higher and 6 out of 10 stocks in Nifty pharma ended 6% higher.
#4. FPI Turn Net Buyers
Foreign investors turned net buyers pouring above Rs. 2600 crores in previous a couple of sessions. Earlier they pull out above Rs. 60,000 crores from the cash segment of the Indian equity markets.
#5. India Volatility Index Declines
Indian Volatility index (VIX) declined to 49.56 levels today, suggesting falling volatility in market trend today. India VIX recently rose from 17.76 to 71.53 levels (approx. 302.8% rise) in the March due to ongoing Coronavirus havoc. VIX raised to its 11-year high position in the march has now shown the improvement signs.
What To Expect On Friday
Markets will remain closed tomorrow on account of Good Friday holiday.
8 April Stock Market Today, Sensex Closes Near 30K, Pharma Stocks Among Gainers
Markets started on a positive note and rallied in the morning. Sensex crossed 31,000 and Nifty hits 9,100 in the morning trade.
The Sensex ends red by falling 173.25 points to 29893.96 whereas Nifty goes down 43.45 points and closes at 8748.75.
Top gainers in NSE are SunPharma (4.64%), Cipla (4.16%), IndusInd Bank (3.99%), and Bajaj Finance (3.53%).
Top losers are TCS (-3.93%), Titan (-3.59%), Shree Cements (-3.43%) and ICICI Bank (-2.19%).
In sector-wise performance, pharma, FMCG and auto stocks are among buyers favorites, while IT, bank and metal stocks remained pressured.
The factors that drove today’s market upside down are given below-
#1. The Indian Government May Extend Lockdown
The stock market couldn’t maintain the uprise because of news that the government may extend the lockdown. The government may take this decision because the coronavirus cases in the country have reached 5,194.
An extended lockdown will affect the economy and businesses. This fear dented market sentiments.
#2. Weak Global Markets
Global markets also showed weak cues that was another reason for Sensex ending in the red. European Union finance ministers couldn’t agree on more support for their coronavirus-hit economies that resulted in negative openings of European exchanges.
European STOXX 600 index fell 0.7%, Germany’s DAX dipped 0.8% while London’s FTSE 100 shed 0.9%.
Amid Coronavirus havoc, Asian markets also saw bloodshed when Hong Kong lost above 1%, Singapore 2%, and South Korea lost near 1%. Australian market also faced a dip of approx. 1%.
#3. Coronavirus Cases Increased
The whole world saw a steep rise in COVID-19 cases in different parts of the world.
Spain reported 6,180 new infections and the death toll rose by 757 to 14,555 in the past 24 hours. This is the highest number of deaths after April 4.
The United States also saw a rise in the coronavirus death toll. Only New York reported 3,544 fatalities from COVID-19 as of April 7.
India reported 773 new coronavirus cases and 32 deaths in the last 24 hours which created uncertainty among traders, thus, the market couldn’t sustain the ride.
What To Expect On Thursday
Expert declared Nifty’s today’s performance as shooting star. You can see the chart below.
You can’t expect to go it up straight but the weakness will be confirmed if the market dips below 8600. The downswing may hit with initial targets ranging between 8550 to 8360 points.
You can expect strength only if NSE index hits 9,000 mark and closes above that.
Traders are advised to stay neutral to reduce overall risk while preserving return potential.
7 April, Today Stock Markets Jumped 2476 Points, Top 4 Factors You Must Know
Sensex today gained 10 year’s highest in one day with 2,476.26 points and closed at 30067.21, while Nifty was up 708.40 points at 8792.20 at the time of the closing bell.
IndusInd was the top gainer with 22.56% gains, followed by Axis Bank with 19.48% and Maruti gained 13.51%.
Let’s look into the factors that resulted in a positive ride of Indian stock exchanges.
#1. India Lifts Drug Export Ban
The Indian government has lifted the ban on the export of 24 drugs and their ingredients including hydroxychloroquine. Hydroxychloroquine has claimed to be effective in treating COVID-19 infections.
It happened after the pressure created US president giving warning to Modi government of facing a retaliation if it doesn’t lift the ban.
India had imposed ban on these medicines last month considering rise in coronavirus cases in the country. These ingredients cover almost 10% of Indian pharmaceutical export share.
This news gave a boost to stocks of pharmaceutical companies. Pharma shares that surged today are – Dr Reddy’s Lab – Rs 3,461 (upto 15%), Torrent Pharmaceuticals – Rs 2,380 ( upto 15%), and Ipca Labs – Rs 1,600 (upto 15%).
Other stocks that gained up to 8% to 15% on NSE are Cadila Healthcare, Aurobindo Pharma, Glenmark Pharmaceuticals, Lupin, Alembic Pharmaceuticals, Laurus Labs, and Cipla.
#2. $1.3 Billion Passive Flow
India may attract a passive inflow of $1.3 bn as analysts at Morgan Stanlay’s expect MSCI to rebalance MSCI India weight in the emerging market (EM) index along with removing the DR (depository receipts) in the foreign ownership limit (FOL) calculation.
This could be a big relief because earlier in the last month foreign investors dumped Indian shares by redeeming ETFs at large scale.
#3. Global Markets Rally
US market rallied on Monday as the news of a decline in coronavirus cases in Spain and Italy welcomed. On Sunday, Spain reported 674 death which is the lowest number since last month.
Along with US, other global markets also took it as a positive sign and showed a surge.
Japan’s Nikkei 225 gained above 4% after Japan’s Prime minister announced a 990 bn USD package to stimulate the economy.
Australia’s S&P/ASX rose to 4% and Hong Kong’s Hang Seng Index (HSI) went up to 2.2%.
Europian markets also felt relieved with a positive trend. United Kingdom’s FTSE 100 (UKX) gained above 3%, France’s CAC 40 (CAC40) surged 3.5% and Germany’s DAX (DAX) increased to 4.2%.
#4. Ease in Curfew Restrictions
It is expected that the government can give some relaxations resulting in the phased exit. Local Administration may also allow partial relaxation to residents and resume their work for limited hours. This may allow businesses to resume operations.
This is giving a positive hope of getting out of this critical situation in near future.
What to Expect on Wednesday
Experts call this surge unstable and market continues to be volatile in upcoming days because the pandemic situation is still not under control.
Steady investments in pharma, financial, energy, and automotive stocks supported today’s rally which are likely to be continued.
April 7, NIFTY (NIFTY) RSI indicator shows value at is 43.44. That means the scrip is neither Over Bought nor Over Sold.
Hence, Wednesday’s session is expected to see a firm start and seems to extend today’s pullback. The 8,800 and 9,000 levels will act as resistance, while the key support level could be at 8600.