Sensex Gains 1089 Points, Nifty Reclaims 22,500 As Markets Witness Brief Relief Rally

Indian stock market investors witnessed some respite today after the bloodbath seen on D-street on April 7. On April 8 the headline indices closed in the green gaining over 1.5 per cent. The Sensex gained 1,089.18 points or 1.49 per cent to close higher at 74,227.08 levels. On the other hand, the Nifty 50 index closed higher at 22,535.85 gaining 374.25 points or 1.69 per cent.

Financial Sector Stocks Lead Nifty Gainers

As many as 49 constituents of the Nifty 50 index closed in the green. Only Power Grid Corporation of India Ltd closed in the red. Shares of financial services companies Jio Financial Services Ltd and Shriram Finance Ltd gained the most among all Nifty stocks, closing higher by as much as 5.61 per cent. Other major gainers included Bharat Electronics Ltd, Adani Enterprises Ltd and Cipla which closed higher by up to 3.69 per cent.

All Sectoral Indices Close Higher

All major sectoral indices posted a recovery after yesterday’s bloodbath, with the Nifty Realty and the Nifty Oil and Gas closing higher by as much as 2.47 per cent. The broader market also posted a significant recovery with the Nifty MidCap 100 and the Nifty SmallCap 100 closing higher by 2.11 per cent and 2.13 per cent respectively. The India VIX index also closed lower by 10.31 per cent, indicating a reduction in the volatility for upcoming trades.

Global Markets Recover After Selloffs

Wall Street indices ended the session mixed with the Dow Jones Futures and Nasdaq closing higher by as much as 1.95 per cent, while the S&P 500 closed lower by 0.23 per cent on April 7. At the time of writing European indices traded in the green with UK’S FTSE 100, France’s CAC 40 and Germany’s DAX Performance Index gaining as much as 2 per cent. Key Asian markets also witnessed a recovery with Japan’s Nikkei 225, Hong Kong-based Hang-Seng and China’s Shanghai Composite trading higher by up to 5.68 per cent on April 8.

Primary Market Action On April 8

Shares of Spinaroo Commercial Ltd and Infonative Solutions Ltd made their debut on the BSE SME platform on April 8. Shares of Spinaroo Commercial are listed with a premium of 3.67 per cent at Rs 52.85 apiece. On the other hand shares of Infonative Solutions are listed with a discount of 20 per cent at Rs 63.2 apiece.

Cues To Watch

The outcome of the Reserve Bank of India’s Monetary Policy Committee meeting is scheduled to be announced on April 9. D-street is expected to factor in the impact of the MPC’s decision in upcoming trades.

According to a report by Trust Mutual Fund, the MPC is likely to cut interest rates by 25 bps with further scope for a 50-75 bps reduction over the next 12 months.

“Against this backdrop, we think the Monetary Policy Committee (MPC) has space for further interest rate reduction of 50-75 bps interest rate cuts in the next 12 months. We expect the MPC to cut interest rates by 25 bps in the April policy,” Trust Mutual Fund said.

The asset management company added that since global circumstances are uncertain and fast-changing, it is not yet a clear call for calling the bottom of growth for India.