Stock Market: Sensex, Nifty rebound on telecom, metal stocks gain; SBI, Vodafone Idea, SAIL shares rise

Stock Market Today: On account of heavy buying in the telecom, metal and banking stocks, the Indian indices bounced back heavily post-lower circuit hit in the early morning trade session. The BSE Sensex regained 34,000 levels after closing at 34,103.48 levels, gaining 1325 points in the intraday trade session. The NSE Nifty also regained 10,000 levels after closing at 10,023.65 levels, up by 365 points from its previous closing. Bank Nifty went 1,195 points northward and closed at 25,166.45 levels.

Speaking on the bounce-back of the Indian stock market Viram Shah, Co-founder and CEO at Vested Finance said, "If we look at the Dow futures, they are actually in the green currently. So, the markets are likely to end the falling streak that they have been seeing. However, one should not attempt to time the market, it’s very difficult to know how the markets will behave. Investors who have uninvested cash are in a great position. Companies with solid business models are available at significant discounts. Such investors should look to capitalize on this opportunity. Instead of trying to time the bottom, they should look to deploy funds and hold for the long-term. This is true for markets across the world, it’s a great buying opportunity globally." 

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Ajit Mishra, VP - Research, Religare Broking Ltd said, "The Indian market opened gap down hitting lower circuit within few minutes of trade following the huge sell-off in global markets. However, it recovered its losses soon after the trading resumed and reported biggest intra-day recovery by ending in positive. Notably, Nifty touched an intraday low of 8,555 and high of 10,159 levels, before ending the day higher by 3.8 per cent at 9,955 levels. The broader markets BSE-Midcap and BSE-Smallcap ended higher by 2.1 per cent and 1.3 per cent, respectively. On the sector front, all the indices ended in green with Banks, Telecom, Oil & Gas and Metals being the top gainers."

Mishra said that the global and domestic markets took a breather for the moment on hopes of further easing measures from respective central banks and government. However, the downside risk for the Indian markets cannot be ruled out in the near term given uncertainty across the globe. The improvement in domestic macro data (IIP and easing CPI) is a good sign, however, growth recovery still remains evasive and therefore there are high expectations that RBI may cut rates in its next policy meet to offset the impact of coronavirus as well as an economic slowdown. Meanwhile, in the near term, we expect volatility to remain high and maintain a cautious stance.

Metal stocks led the bull run on Dalal Street as the BSE metal index soared 6.78 per cent in the intraday trade session. Metal major Steel Authority of India Ltd or SAIL share price skyrocketed around 20 per cent, Tata Steel shares shot up over 14.7 per cent, shares of Hindalco Industries went northward 7.67 per cent, Vedanta stock price roared over 6.5 per cent while Jindal Steel & Power stocks went up over 5.5 per cent.

Telecom stocks also witnessed fresh buying amid news of Modi Cabinet giving relaxation in AGR dues to telecom companies for the next 15 years. Telecom major Vodafone Idea share price skyrocketed over 35 per cent, Bharti Airtel shares soared over 5.5 per cent, shares of HFCL scaled over 10 per cent, MTNL stock price escalated 4.93 per cent while Sterlite Technologies stocks went up 1.92 per cent.

Banking stocks also went through fresh buying as the BSE Bankex went up 4.68 per cent in the intraday trade. Banking major State Bank of India or SBI share price skyrocketed 13.87 per cent, Federal Bank shares jump 9.27 per cent, shares of ICICI Bank soared 5.28 per cent, HDFC Bank stock price went up 4.84 per cent while Axis Bank share price escalated 4.67 per cent.

Among the major Asian indices, the Japanese Nikkei 225 index crashed 6.02 per cent, South Korean Kospi dipped 3.43 per cent, Hang Seng went down 1.33 per cent while Shanghai index went off 1.23 per cent after the Closing Bell trade session.