Relief Rally for Indian Indices, Rising Crude Oil Prices, and Top Cues in Focus Today

Thu, 26 Mar Pre-Open | Monish Vora, TM Team

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Indian share markets continued their rally for the second day yesterday and ended on a strong note.

Benchmark indices Sensex and the Nifty saw their biggest one day gain in nearly 11 years on the back of possible announcement of fiscal measures from the government.

At the closing bell yesterday, the BSE Sensex stood higher by 1,861 points (up 7%) and the NSE Nifty closed higher by 496 points (up 6.4%).

The BSE Mid Cap index ended up by 3.5%, while the BSE Small Cap index ended the day up by 2.8%.

On the sectoral front, gains were largely seen in the energy sector and banking sector.

Since the coronavirus outbreak, all BSE indices and NSE indices have fallen sharply.

In a recent article, we dive deep and show you how bad the coronavirus impact has been for individual sectors. You can read the same here: Worst Hit Indian Sectors Amid Coronavirus Pandemic: 10 Points to Know

Also, what is the best way to protect your investments amid the current stock market situation?

Our special report, How to Trade the Coronavirus Crash, has the answer. Just claim your FREE copy here...

Crude Oil Continues Rally

In news from commodity space, crude oil prices continued their momentum yesterday and went on to witness huge gains. Prices rose more than 5% to Rs 1,976 per barrel as market participants widened their positions tracking a positive trend overseas.

Crude oil also witnessed buying interest on Tuesday as prices rose around 4% on hopes that the US will soon reach a deal on a US$ 2 trillion coronavirus aid package that could blunt the economic impact of the outbreak and in turn support oil demand.

The US Federal Reserve on Monday rolled out an extraordinary array of programs to backstop an economy reeling from restrictions on commerce that scientists say are needed to slow the coronavirus pandemic.

Vijay Bhambwani, editor of Weekly Cash Alerts at Equitymaster, states that at this point in time, short selling natural gas & crude oil at significantly higher levels for the coming summer are high conviction trades.

To know more about his view and positions, you can check out his recent article here: Fed Opens Money Tap (requires subscription).

Vijay's last 11 recommendations have been profitable. He will be sharing full details of his trading system on Monday, 30 March at 5pm.

You can sign up for Vijay's upcoming event here.

Top Stocks in Focus Today

From the FMCG sector, Hindustan Unilever (HUL) share price will be in focus today as the company has signed an agreement with Glenmark Pharmaceuticals to acquire its intimate hygiene brand VWash. The deal includes acquisition of intellectual property rights including trademarks, design and know how related to the VWash brand.

From the automobile sector, shares of Mahindra & Mahindra (M&M) will also be in focus today. The stock of the company hit an over nine-year low of Rs 248, sliding 8%, amid concerns that volumes could take a hit due to the spread of the coronavirus.

IRCTC Amid Coronavirus Lockout

In news from the travel and tourism sector, Indian Railways Catering and Tourism Corporation (IRCTC) has asked people not to cancel the tickets they have booked online for those trains that have been cancelled and assured them that they will get full refund automatically.

IRCTC in a statement stated that "no cancellation required on the part of user. If user cancels his ticket, there are chances he may get less refund. Hence, passengers are advised not to cancel e-tickets on their own for those trains which have been cancelled by railways."

Earlier, Indian railways had cancelled all trains till March 31 in an effort to stop the spread of COVID-19.

However, after Prime Minister Narendra Modi's announcement of a 21-day lockdown across the country, the Indian Railways said that its suspension of all passenger services will continue till April 14.

Note that the stock of IRCTC hit a lower circuit of 5% for eighth consecutive session yesterday as coronavirus outbreak has made travellers reconsider going on vacation in this middle of a global pandemic, putting pressure on travel and tourism industry.

The stock has tumbled more than 30% in eight trading sessions from its previous closing high of Rs 1228.

Speaking of the Indian railways, here's what Tanushree Banerjee wrote about it in one of the editions of The 5 Minute WrapUp...

• Investment in Indian railways has always been lacking in the past. This has meant a stretched infrastructure with more than 60% of routes being over utilised.
  
  The poor image of Indian railways meant a price hike was never an option for the government.
  
  All this has changed in the recent years.
  
  Since 2014, investment in the Indian railways has increased at a rapid pace.

This is evident in the chart below...

Massive Reforms Underway in the Indian Railways

The government's aim to modernize more than 100 stations to world class standards and by provide amenities like wi-fi, quality food and beverage services will improve passenger experience.

Improved services will also help the government justify fare increases in the future.

Tanushree believes such reforms are the need of the hour for the Indian economy.

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Indian Share Market Update: Top Gainers and Losers

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