Sensex slips 260 points; financials dip as RBI extends loan moratorium
The domestic equity market ended in the negative territory on Friday after the Reserve Bank of India (RBI) decided to cut the policy rate by 40 basis points from 4.4 per cent to 4 per cent to trim the impact of coronavirus on the economy. That apart, the central bank also extended the moratorium on loan repayments by three more months, resulting in sell-off in financial stocks.
Nifty Bank today tumbled nearly over 2.5 per cent to 17,279 levels while Nifty Private Bank declined around 3 per cent to 9,421.55 points, with 8 out of 10 constituents ending in the red.
The benchmark S&P BSE Sensex shed 260 points or 0.84 per cent to settle at 30,672.59. HDFC, HDFC Bank, ICICI Bank, and Axis Bank contributed the most to the Sensex’s fall. On the other hand, IT majors, Infosys and TCS, supported the index.
NSE’s Nifty ended at 9,039, down 67 points or 0.74 per cent.
Cement stocks were in focus as India Cements hit a 2-yr high and has soared 33% in 6 days. The stock today hit a 2-year high of Rs 134.40, up 6 per cent, on the BSE in an otherwise weak market and was trading at its highest level since May 9, 2018. In the past six trading days, it has rallied 33 per cent, as compared to a 1.4 per cent decline in the S&P BSE Sensex.
SBI Cards and Payment Services slipped 9% and hit a new low since listing. The stock was trading at its lowest level since listing on March 16, 2020. It has fallen below its previous low of Rs 501 touched on April 16, 2020. The stock has now fallen 34 per cent against its issue price of Rs 755 per share.
Shares of NIIT Technologies surged 9 per cent to Rs 1,573 on the BSE on Friday after the company announced that its Rs 337.4-crore buyback offer will commence from May 29. The IT consulting & software company’s stock was trading higher for the fourth straight day. It has rallied 17 per cent during this period. The stock turned ex-date for share buyback on March 11, 2020.
Bandhan Bank slips 6% to Rs 197 on Friday after the private sector lender said its services have been impacted in some areas of West Bengal and Odisha due to Amphan and the cyclone is likely to impact business worth Rs 260 crore. The stock has fallen 11 per cent in the past two trading days, as compared to a 0.4 per cent rise in the S&P BSE Sensex.
Reliance gained 1% as KKR picked up 2.32% stake for Rs 11,367 cr in Jio Platforms. Again, this deal showcases the interest of global investors in Jio Platforms. Further, along with the previous four deals, this deal could help RJio in the realisation of its digital plans. Over the last month, leading technology investors, such as Facebook, Silver Lake, Vista, General Atlantic and KKR have announced aggregate investments of Rs 78,562 crore into Jio Platforms.
Here are some picks from the week gone by.
