Indices head for strong weekly gain; closes higher
Reacting positively to the steps taken by government to make sure that the economy survives the lockdown; equity markets extended gains for the third consecutive day. The benchmark indices witnessed a buying momentum and closed as high as four per cent, F&O expiry day.
Sensex ended with gains of 4.9 per cent at 29,946, up by 1,260 points while, Nifty ended 3.89 per cent higher at 8,641. The indices have gained as much as 14 per cent within these three trading sessions, hinting towards a strong weekly closing.
The indices were topped by IndusInd Bank, which gained as much as 45 per cent intra-day. The stock has seen a sharp sell-off since the start of the month due to the reports of regulatory issues in the numbers. Other gainers were Bharti Airtel (11.23 per cent), Bajaj Finance (eight per cent) and Kotak Bank (7.66 per cent). After Wednesday’s staller gain, RIL closed mildly lower by 0.6 per cent on BSE.
The broader indices represented by BSE Mid-cap and Small-cap also extended their gains by closing higher at 3.49 per cent and 3.73 per cent, respectively.
During the day, Finance Minister Nirmala Sitharaman announced a much anticipated relief package of Rs 1.7 lakh crore. The amount will be spent as a mix of cash transfer and food security to help urban and rural poor. The focus is more on poor population, which was affected directly after the slowdown. The street though would expect some more relief measures, which can boost consumption overall and revive economic activity.