Sensex Kills #Coronavirus Scare; Records Biggest Jump In 11 Yrs; Rs 4.7 lakh Cr Earned By Investors

The Covid-19 pandemic brought with it unprecedented downfall in the economy at a very quick rate. Wall Street stocks recorded their worst day since 1987 on March 16, 2020, along with BSE indexes fluctuating heavily.

Amidst all of this cornoavirus fears and degradation in the economy around the globe and not just India, we have great news concerning he economic sector of the country.

Sensex Marks Highest Gain in 11 Years

On March 25, Wednesday, the domestic benchmark indices Sensex and Nifty spurred up about 7%, logging their biggest single-day gain since May 2009 at 28,535. 27 out of the 30 stocks of the index ended with gains.

The NSE Nifty 50 index too saw its best single-day jump since 2009, ending 6.62% higher at 8,317. 38 out of the 50 stocks on the index ended with gains.

This comes as great news, as it is the 1^st time in seven weeks that the index has posted two successive days of gains.

All sectoral indices ended the day with gains, led by the Nifty Bank, which witnessed its biggest one-day gain since September 2013. These indices, however, are still down 30.8% and 31.8% on year-to-date basis.

This surge enhanced investor wealth by a whopping Rs 4.7 lakh crore as total market capitalization of firms listed on the BSE jumped to Rs 108.41 lakh crore.

Market breadth was in favour of the advances with 1,063 stocks ending with gains while 703 stocks ended with losses.

For a Closer Look at the Markets

Gainers beat losers in the ratio of 1.2:1 on the BSE. As many as 736 companies still tested their 52-week lows.

• 8 Nifty stocks, comprising of RIL, HDFC Bank, Kotak Bank, UPL, Maruti, Grasim, Adani Ports and HDFC end with gains of over 10%.
• RIL, HDFC Bank, Kotak Bank, Grasim gain the most since 2009.
• Maruti gains the most since 2006
• UPL gains the most since 2018
• 11 Nifty stocks, namely Axis Bank, Bajaj Finserv, Larsen and Toubro, Titan, Nestle, Hindalco, ICICI Bank, Tata Steel, Bharti Infratel, Bharti Airtel and Bajaj Finance, end with gains between 5-10%.
• Axis Bank, Hindalco gain the most since 2018
• Titan, ICICI Bank, Larsen and Toubro gain the most since September 2019
• Nifty Bank gains the most since September 2013; ends with gains of 8.4%
• Nifty Midcap and Smallcap index gain 3.3% each
• All other sectoral indices end with gains
• FMCG, I.T., Metal and PSU Banking index gained 2% each
• Auto index ended with gains of over 4% while realty index gained 3%
• India Volatility Index down 8% to 76.96
• 1,063 stocks ended with gains while 703 stocks ended with cuts
• Nifty Top Gainers: Reliance Industries, HDFC Bank, HDFC, Kotak Mahindra Bank, ICICI Bank.

What Do Analysts Think?

The most important question amidst all the positive news is what the financial analysts think of the entire situation.

According to the Head of Research, Kotak Securities, there are chances of reduction in pressure and some consolidation to happen in the next few weeks. Long term investors can consider averaging gradually while fresh investors can consider an aggressive equity allocation stance at current levels.

According to Axis Bank MD and CEO, there’s a hope of a pickup in economic activity by late April or early May, as he expects stressed companies to get further squeezed, some even to the verge of being shut down.

Market sentiment turned positive across the globe after US senators and Trump administration officials reached an agreement on a massive economic stimulus bill to alleviate the economic impact of the coronavirus outbreak. Hopes of a stimulus for the economy and the markets also added to the bullish sentiment on Street.