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Even though the COVID-19 pandemic has wreaked havoc in the world, it has proven quite a surprising month for the stock market. According to the recent reports, Sensex and Nifty reported a 14 percent improvement in the previous month. This time the indices have gone beyond the crucial resistant point. The Nifty50 claimed approx 9,800 whereas Sensex reported retaining 33,000 the past month. The wider market segments were in accordance with the benchmark indices. The BSE Midcap index recently shared the news of retaining over 13.66 percent while the BSE smallcap segment gained approx 15.54 percent.
In April, the value of Reliance Infrastructure and Jain irrigation Systems stocks got doubled. In addition to that, around 19 stocks witnessed a 50 percent growth in their stock value amid the coronavirus pandemic. These companies in BSE500 include Reliance Capital, Laurus Labs, Reliance Power, Aurobindo Pharma, and so on.
Investors witnessed a growth in their revenues by approximately 16 Lakh Crores a month amidst the coronavirus pandemic. The market capitalization of the organizations listed in the Bombay Stock Exchange rose to approx 130 Lakh Crore as per the reports generated on 30th April 2020. The price took a jump from 113.50 Lakh Crore on the 31st of March.
The trading by foreign institutional investors witnessed a downfall in the past month. The Foreign Institution Investors reported a sale of approx INR 65000 Crores in March. However, the figure came down to Rs 5000 Crores in April. Research further suggests that 50% of companies listed in BSE500 gave a far better performance than the Bombay Stock Exchange Sensex in the past month. The popular companies from this group listed in the BSE500 include AU Small Finance Bank, Asian Paints, Laurus Labs, Alembic Pharma, HUL, Sun Pharma, Dabur India, and the list goes on.
The Impact of the Deadly COVID-19 in the Indian Economy
The Coronavirus outbreak in India has led to the slowdown of production, manufacturing, distribution, sales, and other major activities. In order to prevent the virus from spreading further, the Indian government declared a lockdown in mid-March. Even though the lockdown was expected to be lifted in 14 days, it kept on increasing since then. The government is taking important measures to control the unmanageable virus.
However, this pandemic and lockdown have affected many industries. The new COVID-19 cases are growing at a rapid rate. The good news is the various packages released by central banks in the world have relieved D-street to a certain extent. These packages are announced in different countries dealing with the coronavirus pandemic.
The developed nations such as the United States of America, Thailand, and Malaysia have already leveraged the stimulus packages to get the production going. How soon the market gets back to normal depending on the government's next lockdown update. Everyone is expected the lockdown to be lifted soon. In addition to the news regarding the final lifting of the lockdown, the Indian markets are expecting the stimulus packages from the Indian government for higher productivity.
The Technical Analysis
Nifty50 reported one of the highest series to series growths since 2009. It managed to grow by 14 percent in the past month. For the past four consecutive weeks, Nifty50 has been witnessing higher highs as well as higher lows. As the May Monthly series has just begun, the OI (Open Interest) activity is set at different strikes. The Call Open Interest is around 9500 whereas the Put Call Open Interest is set at 9,000.