Indian indices had a very positive start taking cues from the global market and in anticipation of the Supreme Court verdict of the compounding of loans during the moratorium period
History suggests that stock market returns are correlated with the US presidential cycle
Extending the gains from the previous week, Indian share markets ended the first day of this week on a positive note. Last week, headline indices gained over 3 per cent each. In today’s session, BSE Sensex ended 276 points or 0.71 per cent up at 38,974, while Nifty50 closed above 11,500, gaining 87 points or 0.76 per cent. Index heavyweights such as TCS, Infosys, HDFC Bank, ICICI Bank and Sun Pharma were among contributors that added the most to the indices’ gain today. The broader market underperformed the equity market benchmarks. S&P BSE MidCap index ended 0.18 per cent down at 14,786.58, while the S&P BSE SmallCap index finished 0.38 per cent up at 15,028.
TCS mcap tops Rs 10 lakh cr: TCS shares were the best-performing stocks today, closing with a gain of 7.30 per cent. IT giant made a fresh 52-week high of Rs 2,727 in the intraday deals after the company announced that its board will consider an equity share buyback proposal in its meeting to be held on October 7, 2020. So far from March lows, TCS share price has rallied 65 per cent.
Nifty IT, Nifty Metal indices gain: The trend among Nifty sectoral indices was positive, led by Nifty IT index, up 3.47 per cent. Top index gainers were TCS, Wipro, Infosys, Tech Mahindra, HCL Tech and Mindtree. Nifty Metal index too gained 2.55 per cent led by Welspun Corp, Tata Steel, Jindal Steel, SAIL and JSW Steel.
Technical talk: “The index became a little cautious at the day high and did not go back to claim that figure of 11575-11580. However, the trend remains positive. We can expect to achieve the levels of 11600 and then 11800. We are in the bullish territory until 11300 holds. Hence, a buy on dips strategy can be considered,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
Markets to maintain optimism: “Indian indices had a very positive start taking cues from the global market and in anticipation of the Supreme Court verdict of the compounding of loans during the moratorium period. In the near-term, the market is expected to maintain its optimism based on Trump’s recovery, development of stimulus in US & India, upcoming Q2FY21 results in India and Supreme Court final verdict,” said Vinod Nair, Head of Research at Geojit Financial Services.