Stock markets extend gains to 4th day; Sensex tops 40,000; key reasons

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October 30, 2019 4:19 PM

The benchmark equity indices extended gains for the fourth straight day on Wednesday with Sensex ending the trading session above important level of 40,000.

Both the Sensex and Nifty lost about 1% on ThursdayTop gainers in the Sensex pack included SBI, TCS, ITC, Bharti Airtel, Sun Pharma, Infosys and Bajaj Auto, rising up to 3.37 per cent.

The benchmark equity indices extended gains for the fourth straight day on Wednesday with Sensex ending the trading session above important level of 40,000. Sensex recorded its third-highest close ever after the highest reached on June 3, 2019. Sensex rallied 220.03 points to end at 40,051.87, while Nifty settled near 11,850. Both Sensex and Nifty are 260 points away from intraday record highs. Top gainers in the Sensex pack included SBI, TCS, ITC, Bharti Airtel, Sun Pharma, Infosys and Bajaj Auto, rising up to 3.37 per cent. On the other hand, Yes Bank, Maruti, IndusInd Bank, ICICI Bank, and Bajaj Finance fell up to 2.41 per cent.

“We believe the market trend in the near term will be driven by corporate earnings and thus stock specific volatility may remain high. Further, any favourable announcement from the government could help sustain the momentum. On the global front, expectation of a rate cut in the US Fed meet is high and Fed’s guidance will be keenly watched by the market participants. In addition, other factors such as oil prices and currency movement may have a bearing on the markets,” Ajit Mishra Vice President, Research, Religare Broking said.

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“Bulls continue to dominate as the index heads higher. Market breadth was strong as mid and small caps witness buoyancy. We continue with our bullish stance on the nifty and believe index is likely to test and hit new all-time highs. Any dip near the support zone should be a buying opportunity. Markets are much healthier than before as the participation is broader unlike the previous phase when nifty had hit all-time highs,” Amit Shah, Technical Research Analyst with Indiabulls Ventures said.

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