Sensex, Nifty nudge higher in early trade

Indian markets extended two-day gains in early trade on buying demand in index pivotals. At 9:21 IST, the barometer index, the S&P BSE Sensex, was up 208.40 points or 0.65% at 32,322.92. The Nifty 50 index was up 50.30 points or 0.54% at 9,431.20. Asian stocks were trading higher.

The S&P BSE Mid-Cap index was up 0.67%. The S&P BSE Small-Cap index was up 0.49%.

The market breadth, indicating the overall health of the market, was strong. On the BSE, 716 shares rose and 298 shares fell. A total of 49 shares were unchanged.

Moody's Investors Service on Tuesday slashed India growth forecast for calendar year 2020 to 0.2%, from 2.5% projected earlier. For 2021, Moody's expects India's growth to rebound to 6.2%. Moody's said the economic costs of coronavirus crisis amid the near shutdown of the global economy are accumulating rapidly.

Stocks in news:

Axis Bank fell 2.66%. Axis Bank reported a net loss of Rs 1387.78 crore in Q4 March 2020 compared with net profit of Rs 1505.06 crore in Q4 March 2019. Total income rose 10.34% to Rs 20,219.57 crore in Q4 March 2020 over Q4 March 2019. The private lender's pre-tax loss stood at Rs 1879 crore in Q4 March 2020 compared with profit before tax of Rs 2303 crore in Q4 March 2019. The result was announced after market hours on Tuesday (28 April).

Meanwhile, the bank's board approved raising Rs 35,000 crore in Indian currency/foreign currency by issue of debt Instruments including but not limited long term bonds, non-convertible debentures, perpetual debt instruments and Tier II Capital Bonds or such other debt securities as may be permitted under RBI guidelines, from time to time.

L&T rose 1.1%. L&T has yesterday issued and allotted 25,000 7.70% Rated Listed Unsecured Redeemable Non-Convertible Debentures of Rs. 10 lakh each aggregating to Rs. 2500 crore which will mature on April 28, 2025. The Debentures are proposed to be listed on the National Stock Exchange of India.

Biocon rose 1.56%. Biocon and Mylan N.V. yesterday announced the launch of Fulphila, a biosimilar to Neulasta (pegfilgrastim). Fulphila is approved by Health Canada to decrease the incidence of infection, as manifested by febrile neutropenia, in patients with non-myeloid malignancies receiving myelosuppressive anti-neoplastic drugs.

Crompton Greaves Consumer Electricals rose 1.66%. The company has partially resumed the operations at its plant(s) located at Baddi (Unit III) in a phased manner.

NLC India advanced 3.25%. NLC India said that the company has commenced coal production at Talabira II and III mines on 26 April 2020.

Global Markets:

Overseas, Asian shares were trading with small gains on Wednesday as investors await the US Federal Reserve's decision on interest rates. Markets in Japan are closed on Wednesday for a holiday.

The Fed is expected to announce its interest rate decision later in the global day. Investors will look for guidance on the U.S. central bank's future path of interest rates as the country looks toward gradually reopening its economy.

In US, Wall Street's major indexes lost ground on Tuesday as investors moved out of market-leading growth stocks, though a rotation into cyclical value stocks indicated hopes of economic revival as states began to relax restrictions enacted to fight the deadly COVID-19 pandemic.

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