Benchmarks hit day's high; auto stocks see value buying

Key benchmarks further extended gains and hit fresh intraday high in mid-afternoon trade. The Nifty crossed the 8600 mark. At 14:31 IST, the barometer index, the S&P BSE Sensex, was up 1231.25 points or 4.33% at 29,671.57. The Nifty 50 index was up 373.20 points 4.51% at 8,654.30.

Buying was broad based. The S&P BSE Mid-Cap index rose 2.33% while the S&P BSE Small-Cap index added 2.45%.

The market breadth was strong. On the BSE, 1438 shares rose and 752 shares fell. A total of 162 shares were unchanged. In Nifty 50 index, 44 stocks advanced while 6 stocks declined.

Domestic shares mirrored gains in other global stock markets after data showed that manufacturing activity in China rebounded from record lows in March. Stocks also drew support from signs that the lockdown across much of Europe could be starting to have the desired effect of slowing the rate of new confirmed cases.

Buzzing Index:

The Nifty Auto index rose 1.35% to 4,732.30 on bargain hunting. The index fell 7.75% in past two sessions.

Escorts (up 10.85%), Hero MotoCorp (up 4.33%), Mahindra & Mahindra (up 3.87%), Tata Motors (up 3.74%), Ashok Leyland (up 2.72%), Bajaj Auto (up 1.77%), TVS Motor Company (up 1.67%) and Eicher Motors (up 0.11%) advanced. Maruti Suzuki India was down 1.27%).

Stocks in Spotlight:

Gujarat Narmada Valley Fertilizers & Chemicals surged 7.29% to Rs 111.80. GNFC said that considering the prevailing unprecedented critical situation caused by the Corona Virus (COVID-19) pandemic / epidemic and prevailing nationwide lockdown situation, the operations of nine plants of the company situated at Bharuch complex are under complete shutdown.

G.G. Engineering surged 4.92% to Rs 30.90. The manufacturer of electric power generators said that the company has obtained order for supply of supply, installation, operation and maintenance of 25 Plastic Bottle Crushing Machine' with advertisement right for 5 years at various Location of 16 stations over Mumbai divisions from the Western Railway, Mumbai Central for the disposal of plastics in an efficient way.

JSW Energy fell 1.94% to Rs 43. Brickwork Ratings India has reaffirmed its ratings on commercial papers of the company. Meanwhile, CARE Ratings has reaffirmed their ratings on bank facilities of Barmer Lignite Mining Company (joint venture of the company).

Numbers to Track:

In the foreign exchange market, the partially convertible rupee edged higher to 75.465 compared with its previous closing of 75.5925.

The yield on 10-year benchmark federal paper fell to 6.117% at 14:28 IST compared with 6.209% in the previous trading session.

In the commodities market, Brent crude for May 2020 settlement was up 77 cents to $23.53 a barrel. The contract fell 8.70% or $2.17 to settle at $22.76 a barrel on Friday's trading session.

MCX Gold futures for 3 April 2020 settlement fell to 0.89% to Rs 43450.

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