Sensex closes 743 points up, Nifty settles at 9,187; Zee Entertainment, Asian Paints, IndusInd Bank major gainers

New Delhi: Equity benchmark indices on Wednesday (April 21) ended higher with Nifty closing near to 9200 level supported by the deal between Reliance Industries and Facebook Inc. Expectations of a fiscal stimulus bolstered the market sentiment even as Asian shares dipped and Brent oil futures plunged to a two-decade low amid damage done by the coronavirus pandemic.

Equity benchmark indices rose by 2.4 per cent today as index heavyweight Reliance Industries surged by 9.8 per cent with Facebook picking up nearly 10 per cent stake in India`s largest private sector company`s digital business for 5.7 billion dollars (about Rs 43,574 crore).

The BSE Sensex was up by 743 points or 2.42 per cent at 31,380 while the Nifty 50 edged higher by 206 points or 2.29 per cent at 9,187. Except for Nifty pharma, PSU bank, and realty, all sectoral indices at the National Stock Exchange were in the green with Nifty media up by 6.6 per cent, auto by 2.5 per cent and FMCG by 2.4 per cent.

Zee Entertainment too staged a brilliant performance in today`s session and closed 20 per cent up at Rs 155.10 per share. The other major gainers were Asian Paints, IndusInd Bank, Nestle India, Britannia, Maruti and Hero MotoCorp. However, ONGC fell by 5.6 per cent to Rs 65.45 per share and Vedanta by 2.5 per cent. Larsen & Toubro, Cipla, Power Grid Corporation, and Grasim too traded with a negative bias.

During early hours today, equity benchmark indices were flat as Asian shares slipped and Brent oil futures plunged to a two-decade low amid damage done by the coronavirus pandemic. At 10:15 am, the BSE Sensex was up by 60 points or 0.19 per cent at 30,696 while the Nifty 50 edged lower by 7 points or 0.07 per cent at 8,975.

Except for Nifty pharma and media, all sectoral indices at the National Stock Exchange were in the red with Nifty metal down by 2.4 per cent, PSU bank by 1.9 per cent and financial service by 1.26 per cent. Among stocks, index heavyweight Reliance Industries jumped by 5.65 per cent to Rs 1,307.20 per share after Facebook bought a 10 per cent stake in the company`s digital business for 5.7 billion dollars (about Rs 43,547 crore) to expand its presence in India. This deal makes Facebook the largest minority shareholder in Jio Platforms, which is part of Reliance Industries.

Auto majors Hero MotoCorp, Maruti and Bajaj Auto were up by 2.1 per cent, 1.3 per cent and 1.1 per cent respectively. Pharma majors Dr Reddy and Sun Pharma ticked up by 1.8 per cent and 1.7 per cent. The other prominent gainers were Bharti Infratel, Asian Paints, and Infosys. However, ONGC fell by 9.5 per cent to Rs 62.75 per share, IndianOil Corporation by 4.3 per cent and Bharat Petroleum by 3.8 per cent. Metal major Vedanta cracked by 5.4 per cent and Hindalco by 3.3 per cent.

Meanwhile, Asian share markets slipped to two-week lows following crashing crude prices and deep economic damage caused by the COVID-19 crisis. MSCI`s broadest index of Asia Pacific shares outside Japan lost by 0.8 per cent while Japan`s Nikkei slumped by 1.3 per cent. 

Skittish investors sought the safety of government debt and even dumped safe-haven gold as Brent oil futures plunged for a second day, fueled by a swelling global crude glut.

Australian S&P/ASX 200 futures lost 2.1% in early trading while Japan`s Nikkei futures rose 0.21%. The collapse in US crude prices has given fresh urgency to bearish voices who say it sounds alarm bells for global growth and are bracing for a catastrophic collapse in asset prices as the COVID-19 pandemic wrecks the world economy.

Earlier this week, the May US WTI futures contract crashed into negative pricing for the first time in history. In addition to massive oversupply concerns, analysts say the plunge also highlights the technical constraints the market faces in responding to shocks.

The Nikkei 225 index closed down 1.15% at 19,669.12 on Tuesday. The futures contract is down 2.64% from that close. Hong Kong`s Hang Seng index futures lost 1.31%.

On Wall Street, the Dow Jones Industrial Average fell 2.67% to 23,018.88, the S&P 500 lost 3.07% to 2,736.56 and the Nasdaq Composite dropped 3.48% to 8,263.23. The pan-European STOXX 600 index lost 3.39% and MSCI`s gauge of stocks across the globe shed 3.01%.

As the difficulties of restarting the US economy sank in, US Treasury yields tumbled, with the five-year note hitting a new record low on rising prices for bonds: one of the safest assets. The US dollar rose to a two-week high against a basket of currencies, as investors fled riskier assets for the world`s most liquid currency while putting pressure on oil-linked currencies such as the Norwegian crown and the Canadian dollar.

Investors face a worldwide supply glut that is expected to overwhelm demand for months or even years and current production cuts to offset that excess are nowhere near sufficient.

US crude recently rose 124.08% to $10.01 per barrel while Brent oil futures prices plunged again on Tuesday to $19.82, down 22.49% on the day, as panic extended to a second day.

Both Saudi Arabia and Russia said on Tuesday they were ready to take extra measures to stabilize oil markets along with other producers, but they have not taken action yet. 

Meanwhile, the US Senate on Tuesday unanimously approved $484 billion in additional coronavirus relief for the US economy and hospitals treating patients sickened by the pandemic, sending the measure to the House of Representatives for final passage later this week.

(With Agency Inputs)