Domestic market indices managed to end marginally higher after giving up early gains as investors awaited key economic data release. Extending gains for the eighth straight day, Sensex ended 84 points to 40,593 and Nifty rose by 16 points to trade at 11,930.
Traders said market turned muted as investors awaited release of the industrial production data for August and CPI inflation for September later today.
Last week, bourses gained for the seventh consecutive session. During the seven days of straight gains, Sensex has risen 2,529 points while NSE Nifty has gained 692 points from 11,222.
SBI, followed by ITC, PowerGrid, Axis Bank, NTPC, ICICI Bank, HDFC and Kotak Bank were among the top gainers on Sensex. On the other hand, Bajaj Auto, ONGC, Titan, HDFC Bank and Asian Paints were among the laggards.
Sectorally, barring pharma, IT and FMCG, all other indices traded lower today. Media indices fell 2.5%, followed by a 2% decline in PSU Bank and 1% fall in metal stocks.
S Ranganathan, Head of Research at LKP Securities said,”Markets ended in the green today on the back of measures announced to boost consumer demand. Today shall also be remembered for the tepid 19% gain over its issue price as leveraged HNI Investors booked losses for what indeed was a resounding response to the IPO of Mazagon Dock in terms of oversubscription”.
Vinod Nair, Head of Research at Geojit Financial Services said,”To sustain the market trend, a lot will depend on the size and effectiveness of the stimulus. Cash voucher and advance scheme, sops to government employees, failed to cheer the market as it did not provide the required boost to the economy as expected. It is anticipated that there will be more measures revealed in the future. The market will look forward, with high hopes on Q2 results and an end to the moratorium saga. IT, Banks and FMCG will be the sectors under focus, in the near-term.”
On the currency front, the rupee snapped its three-session winning run and slipped 12 paise to settle at 73.28 against the US dollar on Monday.
Overseas, barring Japan’s Nikkei and Singapore’s SGX Nifty, most Asian and European indices were trading higher on Monday, tracking rally from the US. Investors also focused on Yuan movements after PBoC announced a rule change that would make it cheaper to short the yuan.
Wall Street closed higher on Friday as investors focused on talks regarding coronavirus relief package in the US, encouraged by continued talks between House Democrats and the Trump administration. Investors also cheered signs of decisive result in upcoming US elections.
On markets closing-Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said, “Nifty took a breather after crossing the psychological 12000 mark. This does not change anything in the short to medium-term time frame. The markets continue to show a bullish indication and are aptly positioned to achieve the levels of 12200-12300. With good support at 11750-11800, any correction can be utilised to go long on the index.”
Ajit Mishra, VP – Research, Religare Broking said,”We believe, along with global cues, earnings announcements and macroeconomic data would dictate the market trend. Further, measures announced by FM to help revive the economy as well as spur demand would augur well for major sectors such as FMCG, Auto, Capital Goods, Banking etc. ahead. Amid all, we expect volatility to remain high thus traders should maintain extra caution in trade selection and risk management.”
Worldwide, there were 377 lakh confirmed cases and 10.81 lakh deaths from COVID-19 outbreak. India’s COVID-19 caseload breached the 71-lakh mark and the death toll from COVID-19 infections rose to 10.9 lakh, as of today.