Sensex, Nifty managed to gain for yet another trading session following global cues, as stock markets reacted to the news of promising results being shown by possible coronavirus vaccine.
Sensex, Nifty managed to gain for yet another trading session following global cues, as stock markets reacted to the news of promising results being shown by possible coronavirus vaccine. S&P BSE Sensex added 511 points or 1.37% to sit at 37,930 points, while the Nifty 50 ended at 11,162 mark. “Markets held fort the entire day and also managed to close around the highest point of the day. While we do not rule out profit booking sessions, the overall trend of the market continues to remain bullish. Hence, if we see a slip in the markets, it would be a good opportunity to enter at lower levels to sell at higher levels,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Top gainers: For a good part of the day finance stocks and Reliance continued to pull the equity markets higher. At the end, Power Grid, Maruti and ICICI Bank were the top gainers on the BSE Sensex. “Bulls were in firm control today as heavyweights Reliance & HDFC held up well with gains. PSE Index led by Power Grid and Oil & Gas stocks were the smart gainers as their moves had an overall positive effect on PSU stocks,” said S Ranganathan, Head of Research at LKP Securities.
PSU Stocks gain momentum: Power Grid, a government-owned entity was the top gainer on Sensex. Apart from this, S&P BSE PSU index was also seen gaining on Tuesday, ensign higher by 133.68 points or 2.69%. Analysts opined that this could be a result of the divestment process picking up steam.
Global Cues: With European leaders agreeing to a landmark stimulus plan, European shares surged to a 4-month high while German stock markets jumped into the positive year-to-date. “EU leaders clinched a deal on €750B recovery fund. The recovery fund will be available from January 2021 and there will be no new bridge financing until then. “Asian shares were mostly higher Tuesday on rising hopes for an effective vaccine to fight the coronavirus pandemic,” said Deepak Jasani, Head – Retail Research, HDFC Securities.
Outlook: “Although the market uptrend remains intact, investors are advised to be cautious since it seems to be in overvalued territory. Result-heavy day today, and stock-specific commentary will be looked at,” said Vinod Nair, Head of Research at Geojit Financial Services. With Markets inching higher with every passing day, Nifty may face the next hurdle around 11,250 level, according to Ajit Mishra, VP – Research, Religare Broking.