Domestic benchmark indices continued to gain for the third-straight trading session today, extending their gains to levels last seen before the coronavirus became a pandemic.
Domestic benchmark indices continued to gain for the third-straight trading session today, extending their gains to levels last seen before the coronavirus became a pandemic. S&P BSE Sensex was up 398 points or 1.08% while the 50-stock Nifty ended above 11,000 mark. “The Indian benchmark indices exhibited volatility, tracking earnings results, and the SC AGR hearing. Nifty continued its momentum and closed above the 11000 mark. This was in spite of increasing virus infections, both in India and abroad,” said Vinod Nair, Head of Research, Geojit Financial Services.
Financials help push markets higher: From HDFC Bank, which was seen gaining 4% on Monday morning to Bajaj Finance, which ended as the top Sensex gainers, financials were seen pushing the equity markets higher today. Apart from HDFC and Kotak Mahindra Bank all banking and finance stocks ended in the green.
Global market watch: Among Asian stock markets China’s Shanghai Composite was up over 3% while Hang Seng was flat. Nikkei 225 and TOPIX also ended flat along with South Korean equity markets. “Asian shares were mostly lower (though nominally) on Monday as a spike in global coronavirus cases hung over markets awaiting efforts from the eurozone and United States to stitch together fiscal stimulus plans to fight the pandemic. European stocks recovered from a weak start to edge higher on Monday after reports suggested that EU leaders were making progress on a coronavirus rescue plan after three days of haggling,” said Deepak Jasani, Head – Retail Research, HDFC Securities.
Investor wealth jumps: Investor wealth jumped 1.29 lakh crore between Friday’s closing and Monday’s closing as market capitalization of all BSE listed firms jumped to Rs 146.15 lakh crore from Rs 144..85 lakh crore. This is the first time in the fiscal year that the investor wealth has reached these levels.
Sectoral indices: All sectoral indices on the Nifty ended in the green except for Nifty Pharma which was down 1.6%. Nifty Financial Services and Nifty Bank were the top gainers. “Amongst the sectors decent buying interest was seen wherein Banks, IT and Consumer Durables were the top gainers while Healthcare, Capital Goods and Power ended in the red. The broader markets ended in-line with the benchmark,” said Ajit Mishra, VP – Research, Religare Broking.
Earnings surprise markets so far: Equity markets have been cheering the recent earnings reports where the markets have been surprised by index majors. “The earnings results declared so far have been positive, as the sectoral leaders, especially in the IT and Banking sector, have emerged better than expected in a quarter that was considered to be a washout, in terms of business,” said Vinod Nair.