The market extended rally for the third day on Thursday, supported by banks and FMCG stocks. Trading was volatile due to expiry of monthly derivatives contracts today, 26 March 2020.

The barometer index, the S&P BSE Sensex, jumped 1,410.99 points or 4.94% at 29,946.77. The Nifty 50 index spurted 323.60 points or 3.89% at 8,641.45.

In the broader market, the BSE Mid-Cap index rose 3.49% and the BSE Small-Cap index gained 3.73%.

The market breadth was strong. On the BSE, 1508 shares rose and 769 shares fell. A total of 172 shares were unchanged.

The Nifty 50 index has bounced 1031.20 points, or 13.55% in three sessions from its recent closing low of 7,610.25 on 23 March 2020.

FM Media Briefing Highlights:

Finance Minister Nirmala Sitharaman said that a package worth Rs 1.7 lakh crore is ready for the poor who need immediate help like migrant workers and urban and rural poor.

FM announced Pradhan Mantri Gareeb Kalyan Ann Yojna (for next 3 months) in which 80 crore poor people (2/3rd of India's population) are covered. In addition to already allotted 5 kg of rice/wheat per person, an additional 5 kg will be allotted free. Additional 1 kg pulse (according to regional preference) will be given.

FM added that 8.69 crore farmers will be immediately benefited through direct cash transfers. Installment of Rs 2,000 in the first week of April will be transferred, FM added.

For old age, divyang, pensioners (3 crore people covered), one-time amount of additional Rs 1000 in two installments through direct bank transfer (DBT) (hence no middlemen) over 3 months will be given.

FM announced an increase of Rs 2000 per worker on average as additional income in MGNREGA (5 crore families benefited).

FM said 20 crore women Jan Dhan Yojana account holders will get Rs 500 per month for the next three months.

The government will provide free LPG cylinders to woman beneficiaries of Ujjwala scheme. This will benefit 8.3 crore below poverty line (BPL) families.

FM also announced a Rs 50 lakh insurance per healthcare worker as a medical insurance cover for them for three months.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.226% at 16:55 IST compared with 6.304% at close in the previous trading session.

In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 75.16, compared with its close of 75.94 during the previous trading session.

In the commodities market, Brent crude for May 2020 settlement fell 32 cents at $27.07 a barrel. The contract rose 24 cents or 0.88% to settle at $27.39 a barrel during the previous trading session.

Foreign Markets:

European markets extended losses while most Asian markets ended lower on Thursday as investors awaited the passage and details of a $2 trillion stimulus package in the United States to combat the economic fallout from the coronavirus.

The US Senate on Wednesday passed a $2 trillion Coronavirus disaster aid bill that is the largest economic stimulus in the history of United States.

Singapore's Ministry of Trade and Industry said Thursday that the Singapore economy is now expected to shrink by between 1.0% and 4.0% this year. Official preliminary data showed Singapore's economy contracting 2.2% in the first quarter from a year ago.

Investors were cautious ahead of the latest US jobless claims data that's expected to show a massive spike in unemployment claims after businesses stateside closed their doors to try to slow the spread of the coronavirus.

In Europe, EU leaders will hold a virtual summit to discuss their response to the coronavirus outbreak amid some criticisms of a lack of coordinated response to the crisis. Italy and Spain are the worst-hit countries in Europe, with the death toll in each country surpassing 7,000 and 3,500 respectively. The death toll in the US has now surpassed 1,000.

In US, stocks on Wednesday finished well off their highs and the Nasdaq turned negative in the final minutes of trade, as the passage of a $2 trillion economic rescue package appeared to hit a snag. The Senate unanimously approved the trillion dollar economic relief package late Wednesday and the stimulus bill now heads to the House, which will push to pass it by voice vote Friday morning as most representatives are out of Washington.

Buzzing Indian Segments:

The Nifty FMCG index jumped 4.89% to 25,668.20, extending gains for third day. The index has added 10.71% in three sessions.

Marico (up 7.99%), Hindustan Unilever (up 6.77%), Godrej Consumer Products (up 5.95%), Britannia Industries (up 5.86%), GlaxoSmithKline Consumer Healthcare (up 5.58%), Dabur India (up 5.39%), Colgate-Palmolive (India) (up 4.41%) and Nestle India (up 4.19%) advanced.

FMCG stocks were in demand as direct cash transfer by the government could boost FMCG sales in rural India.

The Nifty Bank index jumped 6.36% to 19,656.50. The index has risen 16.19% in three sessions.

Among private sector banks, Federal Bank (up 9.13%), Kotak Mahindra Bank (up 7.66%), HDFC Bank (up 6.76%), Axis Bank (up 4.82%) and ICICI Bank (up 4.68%) rose.

IndusInd Bank surged 45.07% to Rs 436.95. The stock slumped 62.54% in the past eight trading sessions to Rs 301.2 on 25 March 2020, form its recent closing high of Rs 804 on 13 March 2020.

Bandhan Bank spurted 39.44% to Rs 215.65. The stock slumped 33.44% in the past three trading sessions to Rs 154.65 on 25 March 2020, form its recent closing high of Rs 232.35 on 20 March 2020.

Among public sector banks, IDBI Bank (up 7.87%), Union Bank of India (up 5.39%), Canara Bank (up 4.42%), Bank of India (up 3.77%) and State Bank of India (up 1.53%) advanced.

Stocks in Spotlight:

Among index majors, Bharti Airtel (up 11.23%), Infosys (up 6.66%) and HDFC (up 6.47%) surged.

Cipla rose 2.64% after the company said it received US drug regulator's final approval for generic version of AstraZeneca Pharmaceutical's Nexium. Nexium is a proton pump inhibitor indicated for treatment of gastroesophageal reflux disease (GERD), reducing risk of NSAID-associated gastric ulcer, eradication of helicobacter pylori (H. pylori) bacteria to reduce the risk of duodenal ulcer recurrence and for pathological hypersecretory conditions, including Zollinger-Ellison syndrome.

JSW Steel slipped 0.27%. The company announced after trading hours yesterday, 25 March 2020, that the manufacturing operations in all the locations have been either scaled down or suspended (in certain locations). Consequently, the capacity utilisation is expected to go down significantly during this period of lockdown. The decision to scale down/suspend production is done to support the cause of containment of the pandemic COVID-19, notwithstanding the exception to manufacturing units with continuous operation and the units producing essential commodities (steel is classified as an essential commodity under the Essential Services Maintenance Act, 1981 (ESMA)), the exchange filing added.

NTPC rose 1% to Rs 80.50. The company informed that second Unit of 660 MW of Khargone Super Thermal Power Project has been added to Installed Capacity of NTPC on successful completion of trial operation. With this, the total installed capacity of Khargone Super Thermal Power Project, NTPC and NTPC group has become 1320 MW, 50355 MW and 58816 MW respectively.

REC rose 5.03% to Rs 87.75 after the company said its board has approved a proposal to revise upward its borrowing for the current financial year to Rs 94,000 crore from the Rs 90,000 crore estimated earlier. Besides, the board has also approved an Rs 1.10 lakh crore market borrowing by the company during the next financial year 2020-21, the company said in an exchange filing made after market hours yesterday. The board also approved the launch of capital gains tax exemption bonds (Series XIV) under Section 54EC of the Income Tax Act, 1961, for raising funds on a private placement basis for an amount of Rs 2,500 crore with a green shoe option to retain oversubscription.

Strides Pharma Science fell 2.94%. The company's flagship facility, KRS Gardens in Bangalore, Karnataka which was inspected by the United States Food & Drug Administration (USFDA) in March 2020, has received the Establishment Inspection Report (EIR), thereby confirming the successful closure of the inspections.

Vinati Organics surged 13.32%. The chemical maker has shut down its manufacturing operations at two Maharashtra-based plants due to outbreak of Corona Virus.

Caplin Point Laboratories jumped 19.84% at Rs 244.30 after the company said it received final approval from the US drug regulator for Verapamil Hydrochloride injection. Verapamil Hydrochloride is a calcium channel blocker used in the treatment of cardiac conditions such as high blood pressure, arrhythmias and angina. According to IQVIA (IMS Health), Verapamil Hydrochloride injection USP had US sales data of approximately $28 million for the 12-month period ending December 2019.

InterGlobe Aviation fell 0.24%. The company on Wednesday said that the restrictions on the operation of international and domestic flights are likely to continue till 14 April 2020. The National lockdown announced by the Government of India with effect from 12:00 am on 25 March 2020 until 14 April 2020, it is likely that these restrictions on the operation of the company's international and domestic flights will continue until 14 April 2020.

India Cements soared 6.94% to Rs 102.50 after Mumbai-based billionaire Radhakishan Damani purchased 16 lakh shares for Rs 94.97 each via bulk deal on BSE yesterday, 25 March 2020.