Nifty, Sensex Rise On Banking, Consumer Boost Amid Lockdown

The Indian stock market rose on Wednesday as heavyweight banking and consumer goods shares followed a rise in U.S. markets overnight, even as Asia’s third-biggest economy entered into an extended lockdown to contain the coronavirus.

The NSE Nifty 50 index rose 2.66% to 9,233.35 by 0502 GMT, while the benchmark S&P BSE Sensex was up 2.68% at 31,513.43, as trading resumed after a holiday on Tuesday.

“Domestic markets are now reacting to movement in the U.S. and Asian markets over the last two days. We are catching up with global markets, which were up on some optimism that the COVID-19 situation is coming under control,” said Deepak Jasani, head of research at HDFC Securities in Mumbai.

Sentiment was also supported after the government said on Wednesday it will allow opening up of some industries in rural areas after April 20 to reduce the distress caused to millions of people because of the lockdown.

“However, there is a possibility of disappointment that could set in later in the session due to the extended lockdown... There have been some growth-cut assumptions as well, which will have to sink in at some point,” Jasani said.

The International Monetary Fund said on Tuesday it expected the global economy to shrink by 3.0% during 2020 in a coronavirus-driven collapse of activity that will mark the steepest downturn since the Great Depression of the 1930s.

India extended a lockdown on its 1.3 billion people until at least May 3 on Tuesday as total COVID-19 cases exceeded 10,000.

Meanwhile, corporate India is heading into the March-quarter earnings season, with IT firm Wipro Ltd set to release its results later in the day. Wipro shares were up 1%.

Oil-to-retail conglomerate Reliance Industries Ltd was the biggest boost to the indexes, climbing as much as 3.9% to its highest in more than five weeks.

Private-sector lender ICICI Bank Ltd jumped 5.3% and while consumer goods giant Hindustan Unilever Ltd rose 4.8%.

UPL Ltd, a producer of crop protection chemicals, surged 13.4% to a near one-month top after it said on Tuesday all its factories around the world were in operation, and that it does not see “significant” challenges in meeting customer demand. The stock was the top percentage gainer on the Nifty 50 index.

Aluminium producer Hindalco Industries Ltd jumped as much as 9% after its arm completed the $2.8 billion acquisition of U.S.-based rolled products major Aleris.