Domestic shares rallied on Tuesday, mirroring gains in other global stock markets after data showed that manufacturing activity in China rebounded from record lows in March. Stocks also drew support from signs that the lockdown across much of Europe could be starting to have the desired effect of slowing the rate of new confirmed cases.

The barometer index, the S&P BSE Sensex, surged 1,028.17 points or 3.62% at 29,468.49. The Nifty 50 index spurted 316.65 points 3.82% at 8,597.75.

Sentiment also improved after the media reported that the government has put off implementation of the uniform stamp duty on transfer of shares, debentures, futures, options, currency and other capital market instruments to 1 July 2020. The change was earlier notified to be implemented from 1 April 2020.

In the broader market, the BSE Mid-Cap index rose 2.49% and the BSE Small-Cap index gained 2.98%. Both these indices underperformed the Sensex.

The market breadth was strong. On the BSE, 1522 shares rose and 773 shares fell. A total of 157 shares were unchanged.

Numbers to Watch:

The yield on 10-year benchmark federal paper fell to 6.138% at 16:55 IST compared with 6.209% 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 75.5325, compared with its close of 75.5925 during the previous trading session.

In the commodities market, Brent crude for May 2020 settlement rose 91 cents at $23.67 a barrel. The contract fell $2.17, or 8.70% to settle at $22.76 a barrel in the previous trading session.

Foreign Markets:

Shares in Europe and Asia advanced on Tuesday as China's official manufacturing Purchasing Managers' Index (PMI) for March came in better than expected.

China's official manufacturing PMI bounced to 52 in March, up from a record-low 35.7 in February.

In US, stocks surged on Monday, rebounding from a deep rout triggered by the coronavirus pandemic. The rebound was led by an 8% pop in Johnson & Johnson after it announced a vaccine candidate for the coronavirus.

US President Donald Trump extended the timeline for social distancing guidelines to April 30, which many believe will reduce economic damage in the long run.

Buzzing Domestic Segments:

The Nifty Metal index rose 5.19% to 1,585.90, reversing Monday's 3.03% decline.

SAIL (up 13.27%), Hindalco Industries (up 7.77%), Hindustan Zinc (up 6.26%), Tata Steel (up 6.14%), Hindustan Copper (up 5.94%), NMDC (up 3.51%), NALCO (up 3.39%), JSW Steel (up 2.92%) and Jindal Steel & Power (up 2.69%) advanced.

Vedanta jumped 5.11%. The company said its mining operations, which manufacture essential commodities, and the oil & gas business will continue across all sites during the lockdown imposed by the Centre to contain the spread of coronavirus.

The Nifty Pharma index advanced 4.07% to 7,176.50. The index has surged 11.57% in past six sessions.

Aurobindo Pharma (up 6.28%), Cadila Healthcare (up 5.95%), Ipca Laboratories (up 5.82%), Sun Pharmaceutical Industries (up 5.56%), Lupin (up 5.26%), Glenmark Pharmaceuticals (up 4.98%), Divi's Laboratories (up 4.35%), Dr. Reddy's Laboratories (up 4.11%), Wockhardt (up 2.28%), Abbott India (up 2%), Strides Pharma (up 1.46%), Alkem Laboratories (up 1.34%) and GlaxoSmithKline Pharmaceuticals (up 0.08%) advanced.

Drug major Cipla fell 2.11% to Rs 423. The stock jumped 14.71% in the past three sessions.

Piramal Enterprises jumped 9.71% at Rs 938.80 after the company said a committee of board approved allotment of non-convertible debentures (NCDs) aggregating up to Rs 750 crore. The tenure of NCDs is 15 months and offers interest rate of 10.25% per annum.

Stocks in Spotlight:

ITC (up 7.84%), ONGC (up 7.64%), Tata Steel (up 6.14%), Tech Mahindra (up 5.96%) and State Bank of India (up 5.35%), were major gainers.

IndusInd Bank crashed 14.68% to Rs 351.15. The bank in a conference call hosted yesterday informed that it has seen a withdrawal of 10-11% of its deposits, largely led by a state government. Wholesale and retail deposits too saw a decline. The lender said it has replaced the outflows via various means such as long duration refinance/forex borrowings swapped to the Indian Rupee. The lender also said that the moratorium granted by the RBI should help its portfolio in various segments.

Reliance Industries (RIL) advanced 7.76% to Rs 1112.45. The company said its board will meet on 2 April 2020 to consider raising funds by issuing listed, secured/unsecured, redeemable non-convertible debentures (NCDs) on private placement basis in one or more tranches/series.

Gujarat Narmada Valley Fertilizers & Chemicals surged 10.08% to Rs 114.70. GNFC said that considering the prevailing unprecedented critical situation caused by the Corona Virus (COVID-19) pandemic / epidemic and prevailing nationwide lockdown situation, the operations of nine plants of the company situated at Bharuch complex are under complete shutdown.

Britannia Industries gained 8.35% at Rs 2681.10. The company informed that in view of the COVID-19 pandemic, the company has taken various measures (including work from home) to ensure safety and well-being of all the employees and is ensuring compliance with the directives issued by the central government, state government and local administration in this regard. The company manufactures food products which are considered as essential commodities for the consumers. However, due to lock down ordered by the Government of India across the country to contain the spread of COVID-19, the operations of the company have also been disrupted.

Aster DM Healthcare gained 2.38%. The company announced the closure of its loss making pharmacies in Kuwait. The company said that it intends to exit from the Kuwait market by shutting down the loss making operations of the pharmacies. The drug maker expects to close all Kuwait operations by 31 May 2020. The company said it has been operating pharmacies in Kuwait through its subsidiary, Aster Kuwait Pharmaceuticals and Medical Equipment Company W.L.L (the subsidiary). As on 31 March 2020, the company's subsidiary contributed Rs 33.26 crore or 0.42% towards Aster DM Healthcare's consolidated revenues. The business had a negative net-worth of Rs 26.58 crore.

G.G. Engineering hit 5% upper circuit at Rs 30.90. The manufacturer of electric power generators said that the company has obtained order for supply of supply, installation, operation and maintenance of 25 plastic bottle crushing machine with advertisement right for five years at various location of 16 stations over Mumbai divisions from the Western Railway, Mumbai Central for the disposal of plastics in an efficient way.

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