The benchmark indices further extended gains in mid-morning trade. The Nifty marched towards the 9,500 mark. At 11:29 IST, the barometer index, the S&P BSE Sensex, was up 545.51 points or 1.73% at 32,150.73. The Nifty 50 index was up 159 points or 1.71% at 9,473.95.

The market could remain volatile as traders roll over positions in the F&O segment from the near month May series to June series. The May 2020 F&O contracts expire today, 28 May 2020.

In the broader market, the S&P BSE Mid-Cap index rose 1.09% while the S&P BSE Small-Cap index gained 1.41%.

The market breadth was strong. On the BSE, 1398 shares rose and 575 shares fell. A total of 123 shares were unchanged. In the Nifty 50 index, 38 shares advanced while 12 stocks declined.

Buzzing Index:

The Nifty Private Bank index rose 3.48% to 10,576.15, extending gains for third day. The index has added 12.3% in three sessions.

IndusInd Bank (up 8.26%), City Union Bank (up 3.96%), Axis Bank (up 3.78%), Bandhan Bank (up 3.77%), HDFC Bank (up 3.56%), Federal Bank (up 2.56%), Kotak Mahindra Bank (up 2.51%), RBL Bank (up 2.46%), ICICI Bank (up 2.12%) and Yes Bank (up 1.81%) edged higher.

Stocks in Spotlight:

Adani Power slipped 0.68% to Rs 36.75. The company's subsidiary Pench Thermal Energy signed a power purchase agreement (PPA) with MP Power Management Company (MPPMCL), is a government of Madhya Pradesh undertaking. The PPA is for procurement of 1230 MW of electricity on long term basis from a new power station of 1320 MW capacity to be set up on Super Critical technology in the State of Madhya Pradesh. The power station will be set up on design, build, finance, own and operate (DBFOO) basis by sourcing fuel from the allocated coal linkage under the 'SHAKTI Policy', and the arrangement has been duly approved by MP Electricity Regulatory Commission.

Vedanta rose 1.42% to Rs 89.10. India Ratings and Research has downgraded the rating of the company to IND AA- from previous rating of IND AA with a negative outlook. The ratings agency said that the downgrade reflects likely deterioration in Vedanta's credit profile following a substantial decline in economic activity due to the COVID-19-related lockdown, with the balance sheet leverage remaining elevated in FY21 and FY22. The negative outlook reflects the risk of a further spread of the outbreak, and the resultant global demand shock leading to a prolonged subdued pricing environment. Also, the outlook reflects the elevated risk of refinancing, with material debt repayments coming due at both Vedanta and VRL in FY21 against the backdrop of general risk averseness in debt capital markets towards cyclical sectors.

The agency believes VRL's proposal to de-list Vedanta would lead to a further increase in the balance sheet leverage in the short run, but it would be moderately credit positive for Vedanta in the medium term, as it would reduce the group's structural subordination and improve the liquidity.

NTPC added 0.47% to Rs 95.25. As per media reports, the company has decided to foray in electricity distribution business by expressing interest to buy 51% in Anil Dhirubhai Ambani Group's (ADAG) two utilities in Delhi.

Global Markets:

Overseas, Asian stocks were trading mostly lower as US-China tension woes competed with the hopes of an economic recovery from the coronavirus crisis.

Shares of Hong Kong led the losses after US Secretary of State Mike Pompeo on Wednesday told Congress the Trump administration no longer regards Hong Kong as autonomous from mainland China. consequently, the US could withdraw the preferential trade and financial status Hong Kong has held since it reverted to Chinese rule 23 years ago.

Meanwhile, Japanese Prime Minister Shinzo Abe's cabinet approved a new $1.1 trillion stimulus package that includes significant direct spending, to stop the coronavirus pandemic pushing the world's third-largest economy deeper into recession.

The US equity market finished sharply higher on Wednesday, 27 May 2020, extending the market's gains into a third day, on optimism that economic activity is gathering steam and authorities may offer more stimulus to bolster the recovery. Hopes for potential COVID-19 vaccines under development have also helped propel stocks.

The movements followed up on strong gains in Europe, where authorities proposed a 750 billion euro ($825 billion) recovery fund to help carry the region through the recession caused by the response to the coronavirus pandemic.

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