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Market snaps 6-day losing streak; Sensex, Nifty gain over 2% each

In the US, tech shares recovered some of their recent losses. Hopes of more stimulus in the United States also aided the sentiment

twitter-logoBusinessToday.In | September 25, 2020 | Updated 17:26 IST
Market snaps 6-day losing streak; Sensex, Nifty gain over 2% each
Domestic indices traded majorly higher today after yesterday's 3% drop, in line with Asian markets, tracking firm cues from Wall Street-backed by fresh stimulus talks

Sensex and Nifty closed 2.2% higher each Friday's trading session, backed by positive global equities that were optimistic on renewed hopes of fiscal stimulus from the US.

Reversing six days of falls, the 30-share benchmark Sensex ended 835 points higher at 37,388 and NSE Nifty50 gained 244 points to 11,050. Yesterday, the BSE 30-share benchmark Sensex ended 1,114 points lower at 36,553 and NSE Nifty 50 crashed 326 points to 10,805.

All sectors closed in the green with media, IT and auto indices ending over 3% higher. Almost all stocks on Sensex ended with gains today, with Bajaj Finserv, HCL Tech, Bharti Airtel, IndusInd Bank, L&T, TCS, ONGC and ICICI Bank, Bajaj Finance and SBI trading as top performers.

"Markets recouped most of the yesterdays losses today as Bulls charged ahead on expectations of a host of measures to boost demand ahead of the festive season. While the IT biggies led the charge, it was heartening to see the broader market participants with a host of companies across multiple themes as investors chose to cherry-pick stocks", said S Ranganathan, Head of Research at LKP Securities.

Domestic indices traded majorly higher today after yesterday's 3% drop, in line with Asian markets, tracking firm cues from Wall Street-backed by fresh stimulus talks.

In the US, tech shares recovered some of their recent losses. Although gains were checked as the number of Americans filing new claims for unemployment benefits unexpectedly increased last week. Hopes of more stimulus in the United States also aided the sentiment.

Vinod Nair, Head of Research at Geojit Financial Services said," This relief rally was in spite of mostly negative global cues and seemed to be based on the hope of more stimulus measures by the government. On a weekly basis, the recovery today enabled the benchmark indices to limit to around 3.8% loss for the week."

European markets were mixed today as investors' hope for economic rebound lost sheen with the second wave of coronavirus returning to UK and Europe.

Anuj Gupta- DVP- Commodities and Currencies Research, Angel Broking said," U.S. Federal Reserve Vice Chair Richard Clarida said on Wednesday that the U.S. economy remains in a 'deep hole'  and not going to increase interest rates until inflation hits 2%. The main cause of concern for the US economy is joblessness and weak demand."

Commenting on the week ahead, he added," In spite of the rally seen today, the market is expected to remain volatile and directionless in the absence of solid triggers. Global cues will continue to be in focus as a resurgence in virus cases around the world, leads to more restrictions and more pressure on economic recovery.

Worldwide, there are 324 lakh confirmed cases and 9.87 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 58-lakh mark and the death toll from COVID-19 infections rose to 0.92 lakh.  

On Nifty's near term technical, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The resistance on the upside is at 11300. Until that is not crossed, we cannot surmise that the short term bear trend has been completed and an upside rally will ensue. On the downside, the Nifty can fall to achieve the 10750 levels."

Buoyed by gains in domestic equities, the Indian rupee gained by 28 paise to settle at 73.61 per US dollar on Friday.

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