Sensex rallies 1,000 points, Nifty reclaims 8,500-mark led by rally in global equities
Indian stock market is in positive territory tracking its Asian peers that were mostly higher today following the overnight gains on Wall Street and release of official data from China that showed the country’s manufacturing sector stage a comeback in March, as businesses reopened after the coronavirus shutdown.
At close, the Sensex was up 1,028 points or 3.62% at 29468, and the Nifty was up 316 points or 3.82% at 8597. On the BSE, about 1,495 stocks have advanced, 767 stocks declined, and 150 stocks are unchanged. In Nifty 50 index, 44 stocks gainid while six stocks declined.
The Metal index jumped almost 6 per cent after factory activity in China unexpectedly expanded in March after contracting sharply to a record low, official data showed.
Top gainers in the Sensex pack was ITC that rallied over 7 per cent, followed by Reliance Industries, ONGC, Tata Steel, Tech Mahindra, Sun Pharma and SBI. On the flip side, IndusInd Bank plunged nearly 15 per cent. Maruti, Bajaj Finance and Titan were the other top losers.
Global markets turned green on prospects of more government stimulus and lockdowns to combat the spread of the novel coronavirus.
In Europe, stocks were also trading on a positive note during early trade today. On Monday, the major European markets also moved higher with the German DAX Index surging by 1.9 per cent, while the UK’s FTSE 100 Index advanced by 1 per cent and the French CAC 40 Index rose by 0.6 percent.
Low Market Sentiment in March
After slumping over 23% in a month period in the last month of the financial year 2020, Indian benchmark equity indices Sensex and Nifty have gained 10% and 9% in a week’s session.
Amid concerns over rising coronavirus cases across the world, markets took a dive following highest-ever selling by foreign institutional investors (FIIs) in the capital markets, GDP downgrades by global rating agencies and 21-day lockdown in the country.
As a result, Sensex dipped over 9,000 points to 28,440 on March 30 from 38,297 on February 28. Likewise, Nifty shed 2,900 points to 8,281 from 11,201 during the same period.
Market veterans at Wisdom Capital believe that although market sentiment is low, there is enormous opportunity in the markets right now. Throughout history, we have seen stocks bounce back and economies recover. As an experienced discount brokerage firm, our advice is to make gains from this otherwise bleak situation.
With great market volatility comes unrivalled opportunity, and one can capitalise on market movements, say veterans.
Our analysts observe most value investors are waiting for the bottom of the market to dive in and snap up bargains like what happened today with auto stocks.
The Nifty Auto index rose 1.35% to 4,732.30 on bargain hunting. The index fell 7.75% in past two sessions.
Indian investors will gain the most and still protect their wealth by following solid value investing principles. That is: to buy good companies cheaply and don’t sell when prices are low.
Making profit out of uncertain times
Meanwhile, Wisdom Capital did a small survey and found that during current times of lockdown, people who cannot work from home are investing in stocks with tremendous growth potential that are now trading at a discount.
As a leading discount brokerage firm, our fully online business model appeals to a young clientele who have woken to a brave new world: a police-enforced India lockdown. High street favourites like McDonald’s and Costa have shut their doors.
But we are always open to give our clients greater conference while trading and allow them to make some profit out of uncertain times.