Markets rebound as banks, metals shine

By: |
October 17, 2020 3:00 AM

The banking sector has kick-started their quarterly earnings, which led to the stocks rising in the day’s trade.

he broader indices have fallen more than the benchmarks for the week, with Nifty Midcap declining by 2%.he broader indices have fallen more than the benchmarks for the week, with Nifty Midcap declining by 2%.

The markets rebounded on Friday after correcting sharply in the previous trading session. The Sensex ended the day higher by 254.57 points (0.64%) to close at 39,928.98 while the Nifty was up by 82.1 points (0.7%) to close at 11,762.45. The markets were propelled higher because of the movement in banking stocks in anticipation of positive quarterly results. The Nifty Bank was up by 2% outperforming the benchmark indices.

While the markets ended the session in green, they snapped their two-week winning streak by ending this week with losses of nearly 1%. The broader indices have fallen more than the benchmarks for the week, with Nifty Midcap declining by 2%. The Nifty Bank, which ended the trade higher on Friday was down by 1.3% for the week.

Sanjeev Zarbade, vice president — private client group research, Kotak Securities, said: “The market witnessed a slight correction as sentiments turned cautious on rising number of Covid-19 cases globally, despite domestic cases coming under control, and fading hopes of US fiscal stimulus. Going into the next few weeks, the key events are the US elections, progress on the US fiscal stimulus and earnings announcements from Indian corporates. Valuations are not attractive. Hence, investors should trade with a cautious bias as after the swift rise in markets, there could be sharp corrections. Risk could be resurgence of Covid-19 in India.”
The Nifty Bank’s biggest gainers were Bandhan Bank, HDFC Bank, RBL Bank, Kotak Mahindra Bank and Axis Bank, which were up by 2.93%, 2.92%, 2.72%, 2.05%, and 1.85%. What’s more interesting is that the top gainers in Nifty Bank were private banks and the Nifty Private Bank index, which was up by 2.1%, outperformed the Nifty Bank index.

The banking sector has kick-started their quarterly earnings, which led to the stocks rising in the day’s trade. Edelweiss Securities said, “The highlight of Q2FY21 earnings is likely to be informed clarity provided by lenders on quantum and texture of loans to be restructured. While full-cycle asset quality outlook remains a function of evolving macro and individual player strategies, the timing of covid-19 related GNPA recognition will be clearer post such commentary.”

Foreign portfolio investors (FPIs) sold stocks worth $65.36 billion and domestic institutional investors sold stocks worth $58.5 million. FPIs have bought stocks worth $1.1 billion so far in October. The futures and options segment saw a turnover worth Rs 14.48 lakh crore and the cash market saw a turnover worth Rs 49,499.15 crore, the six-month averages of Rs 16.78 lakh crore and Rs 56,614 crore, respectively.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1First load of 27 tonnes onion procured by Kerala govt from Nafed arrives
2Asian shares, US futures gain after last Trump-Biden debate
3Onion seed prices in Maharashtra touch Rs 6,000/kg on acute shortage