In the broader market, the S&P BSE Mid-Cap index rose 1.46% while the S&P BSE Small-Cap index advanced 1.15%. Both these indices trailed the Sensex.
The market breadth was positive. On the BSE, 1343 shares rose and 1095 shares fell. A total of 168 shares were unchanged. In Nifty 50 index, 44 stocks advanced while 6 stocks declined.
Global shares climbed following developments overnight regarding the use of Gilead Sciences' antiviral drug Remdesivir as a potential new treatment for Covid-19 patients. Sentiment also improved after China said manufacturing activity in the country expanded slightly in April.
Buying was also triggered after foreign portfolio investors (FPIs) turned net buyers of Indian equities on Wednesday (29 April). FPIs bought shares worth a net Rs 722.08 crore on 29 April 2020, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) bought shares worth a net Rs 78.67 crore on 29 April 2020, as per provisional data.
Buzzing Index:
The Nifty Metal index surged 8.08% to 1,863.05, extending gains for second day. The index has added 12.12% in two sessions. Metal shares were in demand after China's manufacturing activity displayed some expansion in April 2020.
Vedanta (up 12.57%), Hindalco Industries (up 11.95%), JSW Steel (up 9.99%), Jindal Steel & Power (up 8.01%), NMDC (up 7.55%), Steel Authority of India (up 6.13%), Tata Steel (up 5.65%), National Aluminium Company (up 3.24%), Hindustan Copper (up 1.76%) and Hindustan Zinc (up 1.58%) advanced.
China is the world's largest producer and consumer of industrial metals. A recovery in the Chinese demand and production remains the key factor as far as metal stocks are concerned.
Stocks in Spotlight:
Reliance Industries (up 2.58%), Hindustan Unilever (down 1.27%) and Tech Mahindra (up 3.19%) will announce their fourth quarterly earnings today.
Mahindra & Mahindra Financial Services jumped 5.83% to Rs 166 after the company said it completed the proceedings for divestment of 49% stake in its asset management subsidiary to Manulife. Manulife has invested $35 million (about Rs 265 crore) in the 51:49 joint venture, which aims to expand its fund offerings, drive fund penetration and achieve long term wealth creation in India.
The joint venture brings together Mahindra Finance's domestic market strength and track record of building successful businesses and partnerships, with Manulife's global wealth and asset management capabilities and richness of experience in servicing the needs of consumers in Asia and around the world.
Tata Motors hit an upper circuit of 20% to Rs 93.75 after media reports suggested that Jaguar Land Rover (JLR) has restored three-fourth of its budgeted production in China. Chery Jaguar Land Rover Automotive Co or CJLR's manufacturing plant in Changshu, which gradually resumed operations from third week of February, has restored its production capacity to 75% of pre-covid-19 levels, reports said.
UPL spurted 12.09% to Rs 403.8. the chemical maker expects its net debt to be at approximately $2.9 billion as of 31 March 2020, lower than $3.8 billion as of 31 March 2019 and $4.2 billion as of 31 December 2019. The same represents a reduction in net debt of approximately $900 million and $1.3 billion as compared to 31 March 2019 and 31 December 2019, respectively. The company has cash/cash equivalent of approximately $875 million as of 31 March 2020. UPL further stated that it presently continues to see demand in line with the expectations as the farming season continues to be normal across the world. This is being supported by governments across the world to strengthen their security of food supply.
Glenmark Pharmaceuticals surged 14.64% to Rs 413 after it received approval from the DCGI (Drug Controller General of India), the regulator in India, to conduct clinical trials on Favipiravir Antiviral tablets on COVID-19 patients. The product is a generic version of Avigan of Fujifilm Toyama Chemical, Japan, a subsidiary of Fujifilm Corporation.
Global Markets:
Shares in Europe and Asia advanced on Thursday as US scientists on Wednesday (29 Apr) hailed a potential breakthrough in the coronavirus fight as a trial showed patients responding to antiviral drug remdesivir, fuelling global hopes for a return to normal.
Gilead Sciences said Wednesday preliminary results of a coronavirus drug trial showed at least 50% of patients treated with a five-day dosage of remdesivir improved and more than half were discharged from the hospital within two weeks.
On the economic data front, China said manufacturing activity in the country expanded slightly in April. The official manufacturing Purchasing Managers' Index for April came in at 50.8, as compared to 52 in March. PMI readings above 50 indicate expansion, while those below that level signal contraction.
In US, markets surged on Wednesday as hopes for an effective COVID-19 treatment prompted a broad rally and helped investors shrug off words of warning from US Federal Reserve Chair Jerome Powell.
Meanwhile, US Federal Reserve policymakers on Wednesday left interest rates near zero and repeated a vow to do what it takes to shore up the economy, saying the ongoing coronavirus pandemic will weigh heavily on the near-term outlook and poses considerable risks for the medium term.
On the economic data front, the Commerce Department says the gross domestic product, the total output of goods and services, posted a quarterly drop for the first time in six years. The US economy shrank at a 4.8% annual rate last quarter as the coronavirus pandemic shut down much of the country.
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