Barometers trade near day's high; Rupee breaks 73 per dollar

The market firmed up further and traded near the day's high in mid-afternoon trade. Positive global cues triggered bargain hunting in domestic shares. The Nifty traded slightly above the 11,200 mark. At 14:27 IST, the barometer index, the S&P BSE Sensex, was up 409.83 points or 1.07% at 38,553.85. The Nifty 50 index was up 146.70 points or 1.32% at 11,279.45.

In broader market, the S&P BSE Mid-Cap index was up 1.23% while the S&P BSE Small-Cap index was up 0.71%.

The market breadth was negative. On the BSE, 1080 shares rose and 1215 shares fell. A total of 149 shares were unchanged. In Nifty 50 index, the market breadth remained positive with 47 stocks advancing and 3 stocks declining.

Economy:

The Reserve Bank of India (RBI) on Tuesday said, "Globally, financial markets have been experiencing considerable volatility, with the spread of the coronavirus triggering risk-off sentiments and flights to safe haven. Spillovers to financial markets in India have largely been contained. Growing hopes of coordinated policy action to mitigate a broader fallout to economic activity has boosted market sentiment today. The Reserve Bank of India is monitoring global and domestic developments closely and continuously and stands ready to take appropriate actions to ensure orderly functioning of financial markets, maintain market confidence and preserve financial stability."

Numbers to Track:

In the foreign exchange market, the rupee fell below 73 mark against the dollar. The partially convertible rupee was trading at 73.095, compared with its previous closing low of 72.76.

The yield on 10-year benchmark federal paper rose to 6.352% at 14:24 IST compared with 6.346% in the previous trading session.

In the commodities market, Brent crude for May 2020 settlement was up 84 cents to $52.74 a barrel. The contract rose $2.23 or 4.49% to settle at $51.90 a barrel in the previous trading session.

MCX Gold futures for 3 April 2020 settlement rose 0.50% to Rs 42165 as investors rushed to safe haven counters following a rapid spread of coronavirus cases throughout the world.

Buzzing Index:

The Nifty Pharma index rose 3.79% to 7,820.45 on bargain hunting. The index has fallen 4.43% in the past two sessions.

Strides Shasun (up 5.96%), Cipla (up 5.08%), Dr Reddy's Laboratories (up 4.84%), IPCA Laboratories (up 4.67%), Piramal Enterprises (up 4.37%), Sun Pharmaceutical Industries (up 4.08%), Lupin (up 3.29%), Aurobindo Pharma (up 2.96%), Divi's Laboratories (up 2.51%), Alkem Laboratories (up 1.8%), GlaxoSmithKline Pharmaceuticals (up 1.22%), Wockhardt (up 1.11%) and Glenmark Pharmaceuticals (up 0.78%) advanced.

Cadila Healthcare rose 1.04% to Rs 252.30. The drug maker said that it has received an approval from the Drug Controller General of India (DCGI) to initiate Phase I clinical trials for its Investigational New Drug (IND) ZYBK2, a New Chemical Entity (NCE) intended to treat Rheumatoid Arthritis (RA).

Stocks in Spotlight:

Steel Strips Wheels fell 1.15% to Rs 700. The company said its total wheel rim sales rose 1% to Rs 12.98 lakh in February 2020 as against Rs 12.83 lakh in February 2019. The company's gross turnover fell 7% to Rs 165.89 crore in February 2020 from Rs 177.40 crore in February 2019. Its net turnover slipped 5% to Rs 137.77 crore in February 2020 over Rs 144.38 crore in February 2019.

Exports segment reported highest ever volume for Steel Strips Wheels (SSWL) on the back of record sales to USA. During the period under review, exports segment surged 144% and tractor volumes rose by 13%. Passenger car segment volumes fell 4%, two & three wheelers segment fell 19% and commercial vehicles segment volumes fell by 40% during February 2020. The company's total wheel rim sales declined 3.49% in February 2020 as against Rs 13.45 lakh in January 2020.

Mahindra Lifespace Developers gained 0.71% to Rs 353.85. Mahindra World City Developers (MWCDL), a subsidiary of Mahindra Lifespace Developers, is developing an Special Economic Zone (SEZ) at Mahindra World City, Chennai. The Ministry of Commerce and Industry (MOCI) has granted approval to MWCDL for partial denotification of 55.90 hectares (de-notified land) in the non-processing area. This de-notified land is a part of approximately 89 hectares which was leased earlier to another subsidiary of the company, Mahindra Integrated Township, for undertaking residential developments in the part of non-processing area.

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