The stock markets have extended their gains, amid bouts of volatility, due to emergence of buying interest at lower levels post the coronavirus-induced panic witnessed in 7 of the past 8 trading sessions. Markets worldwide have been edgy in the recent past as investors attempted to unravel the severity of coronavirus outbreak and its impact on global growth. At 12:30 pm, the S&P BSE Sensex index was at 38,728, higher by 315 points or 0.8 per cent and broader NSE Nifty benchmark was at 11,348, up 100 points or 0.8 per cent from previous close.
All the sectoral indices were trading in the green, with FMCG, IT and banking indices gained 1 per cent each. The broader markets were also trading firm, with the BSE Midcap and Smallcap indices gaining 0.6 per cent apiece at 14,622 and 13,639 respectively. The market breath was also strong, with 1,297 advancing stocks as against 880 declines, of a total 2,309 stocks traded on the BSE.
Analysts are cautious about today's rise as the coronavirus continued to spread its tentacles across the world and has also sneaked into the country, with reported cases of 29 across the country as the global tally has crossed 94,000. The new coronavirus epidemic poses a "serious threat" to people and the world economy, and will slow growth below the 2.9 per cent posted last year, IMF chief Kristalina Georgieva said."Markets will be volatile as virus fears persist, it is very difficult to say that the trend has changed right now," said Siddharth Khemka, head of retail research at Motilal Oswal Securities.
The rupee has erased most of its intraday losses and trading flat at 73.26 per dollar versus the previous day's close of 73.21.
On the IPO front, the SBI Card IPO closes today. The issue has been oversubscribed 12 times till date, excluding the qualified institutional buyers (QIB) portion.
Yes Bank surged 19 per cent on report that the government has approved a plan for top lender State Bank of India to lead a consortium that will buy a stake in the troubled private-sector bank. On the other hand, SBI slid 5.4 per cent on the back of the news.
Select banking, IT and FMCG heavyweights were attracting buying interest on the BSE. Among the banking names, Kotak Bank, SBI and Indusind Bank have gained 1-2 per cent each on the BSE. IT stocks were also in the limelight, with Infosys, TCS and HCL Tech gaining 1-3 per cent each. Hindustan Lever and ITC were also on the investors radar, with gains of around 1 per cent each.
Reliance Industries and ICICI Bank were the only BSE index stocks to trade in the red, with losses of about half a per cent each on the BSE.
On Wednesday, the S&P BSE Sensex index had declined 214.22 points - or 0.55 per cent - to end at 38,409.48, and the broader NSE Nifty benchmark settled at 11,251.00, down 52.30 points - or 0.46 per cent - from the previous close.
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