Markets snap 3-day losing streak on positive global cues

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Updated: May 20, 2020 8:18:21 AM

The markets were up on firm global cues surrounding the initial success of Covid-19 vaccine trial in the US.

Markets, Indian equities, Covid-19 vaccine trial in US, Sensex, Nifty50, Motilal Oswal Financial Services, Shares of Bharti Airtel The benchmark Sensex was up by 167.19 points or 0.59% to close at 30,196.17.

Indian equities ended the day in the green on Tuesday after declining for three straight sessions. The markets were up on firm global cues surrounding the initial success of Covid-19 vaccine trial in the US. However, the rally got sold into and the markets ended the day only marginally higher.

The benchmark Sensex was up by 167.19 points or 0.59% to close at 30,196.17. The broader Nifty50 was
up by 55.85 points or 0.63% to close at 8,879.1.

Foreign portfolio investors (FPIs) sold equities worth $175.42 million on Tuesday. G Chokkalingam, chief investment officer, Equinomics Research and Advisory, said, “The reason that the rallies are getting sold into is because the market fundamentals have not changed.

The virus cases are still rising and the country is still under lockdown. Even the 30% retracement from March 23
lows was not based on the fundamentals of the market.”

Siddhartha Khemka, head – retail research, Motilal Oswal Financial Services, said, “While the global cues have been positive, the Indian market has been weighed down by weak local sentiments. Further, the earnings season and the management commentaries so far has not been encouraging.”

According to the provisional data on the exchanges, FPIs bought equities worth $175.42 million on Tuesday whereas, domestic institutional investors bought equities worth $219.2 million. So far, India has been seeing foreign inflows for the month of May which is in contrast to March and April where the FPIs had pulled out $8.3 billion and $30.5 million, respectively.

Shares of Bharti Airtel rallied by 10.8% and touched their 52-week highs intra-day. This was a reaction to the company’s results where it had delivered a strong core performance.

Banking and financial stocks were yet again responsible for weighing the Nifty down during the day’s trading session. Nifty bank saw a decline of 0.49% and its biggest losers were Bank of Baroda, Bandhan Bank, Federal Bank, Punjab National Bank as well as IndusInd Bank.

The biggest gainers on the Nifty were Bharti Airtel, Adani Ports and SEZ, ONGC, Ultratech Cement Company, and Grasim Industries, while UPL, Vedanta, Reliance Industries, IndusInd Bank and Larsen and Toubro were among the biggest losers.

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