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Markets extend gaining rally in late afternoon session
Jun-02-2020

Indian equity markets added gains to continue its firm trade in the late afternoon session following strong European markets. Among heavy-weights Kotak Mahindra Bank, Bajaj Finance and Indusind Bank exhibited a smart performance. Sentiments’ remain upbeat after Prime Minister Narendra Modi states that  Coronavirus might have slowed down India's speed but the country has now moved from lockdown to unlocking its economy. Traders ignored Global credit ratings agency -- Moody’s Investors Service has downgraded India’s sovereign rating to ‘Baa3’ from ‘Baa2’, saying there will be challenges in implementation of policies to mitigate risks of a sustained period of low growth and deteriorating fiscal position. Sector wise, agriculture sector remained in focus, as the Union Cabinet has given its approval to extend repayment date up to August 31, 2020 for Standard Short-Term loans up to Rs 3 lakh advanced for agriculture and allied activities by banks, which have become due or shall become due between March 1, 2020 and August 31, 2020 with continued benefit of 2% Interest Subvention (IS) to Banks and 3% Prompt Repayment Incentive (PRI) to farmers.

On the global front, European markets were trading higher despite continued civil unrest in the US, as investors weighed signs of a looming economic recovery from the coronavirus crisis. Back home, in scrip specific development, Sterling and Wilson Solar jumped on commissioning first Solar PV Project in Oman and IDBI Bank traded jubilantly on turning black in Q4.

The BSE Sensex is currently trading at 33758.44, up by 454.92 points or 1.37% after trading in a range of 33301.29 and 33830.82. There were 22 stocks advancing against 8 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index gained 0.95%, while Small cap index was up by 1.74%.

The top gaining sectoral indices on the BSE were Bankex up by 2.47%, Realty up by 2.15%, Consumer Durables up by 1.71%, Power up by 1.70% and Industrials was up by 1.68%, while Oil & Gas down by 0.20% and PSU was down by 0.05% were the only losing indices on BSE.

The top gainers on the Sensex were Kotak Mahindra Bank up by 6.02%, Bajaj Finance up by 5.29%, Power Grid up by 4.69%, Indusind Bank up by 4.10% and HDFC up by 3.20%. On the flip side, Maruti Suzuki down by 1.39%, ONGC down by 0.95%, NTPC down by 0.87%, Nestle down by 0.62% and SBI down by 0.38% were the top losers.

Meanwhile, in order to avoid travelling to banks for renewals during COVID pandemic period, the Union Cabinet has given its approval to extend repayment date up to August 31, 2020 for Standard Short-Term loans up to Rs 3 lakh advanced for agriculture and allied activities by banks, which have become due or shall become due between March 1, 2020 and August 31, 2020 with continued benefit of 2% Interest Subvention (IS) to Banks and 3% Prompt Repayment Incentive (PRI) to farmers.

The Extension of repayment date for Standard Short-Term loans will help the farmers to repay/renew such loans up to the extended repayment date of August 31, 2020 at 4% p.a., interest without attracting any penalty and thus help them in avoiding travelling to banks for such renewal during this COVID pandemic period.

Meanwhile, the government is providing concessional Standard Short-Term Agri-loans to farmers through banks with 2% p.a, interest subvention to banks and 3% additional benefit on timely repayment to farmers thus providing loans up to Rs 3 lakh at 4% p.a. interest on timely repayment.

The CNX Nifty is currently trading at 9956.35, up by 130.20 points or 1.33% after trading in a range of 9824.05 and 9978.60. There were 36 stocks advancing against 14 stocks declining on the index.

The top gainers on Nifty were Kotak Mahindra Bank up by 6.09%, Tata Motors up by 5.97%, Zee Entertainment up by 5.81%, Bajaj Finance up by 5.36% and Bajaj Finserv up by 4.85%. On the flip side, Coal India down by 3.26%, BPCL down by 1.99%, Maruti Suzuki down by 1.56%, ONGC down by 1.13% and JSW Steel down by 1.06% were the top losers.

European markets were trading higher, UK’s FTSE 100 increased 32.48 points or 0.53% to 6,198.90, France’s CAC increased 66.22 points or 1.39% to 4,829.00 and Germany’s DAX was up by 344.32 points or 2.97% to 11,931.17.

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