After a volatile trading session, market indices closed on a positive note on Monday amid positive global equities. Erasing three days of consecutive losses, Sensex ended 143 points higher at 39,757 and Nifty gained 26 points to 11,669. On Friday, Sensex ended 135 points lower at 39,614 and Nifty fell 28 points to 11,642.
ICICI Bank, IndusInd Bank, Bharti Airtel and SBI were among the gainers. On the other hand, Reliance Industries, followed by HCL Tech, TCS, Asian Paints, Bajaj Auto, Infosys and HUL were among the top losers.
Sectorally, gains in banking, financials, realty and FMCG index were capped by losses in auto, media, metal, IT and pharma scrips.
Ajit Mishra, VP - Research, Religare Broking said, "Markets traded volatility in a range amidst mixed cues and finally ended almost unchanged. Initially, the reaction on two of the index heavyweights results, Reliance and ICICI Bank, led to volatile swings in the market. Reliance Industries witnessed sharp profit-taking and slipped nearly 9%, however, strong results from ICICI Bank led to healthy buying interest in overall banking stocks. Meanwhile, indications were mixed from the global front."
Amid hopes of better than expected economic activity and fast recovery in China, Asian stocks turned positive today. Chinese manufacturing activity grew in October to 53.6, which was higher than analysts' estimates.
US markets closed lower on Friday as investors reacted to the rising coronavirus cases in the country. Key US events this week including the presidential election, Federal Reserve meeting and the release of major corporate results.
European stocks reversed the trend and were trading higher today on the back of better than expected economic data amid fresh restriction to fight rising coronavirus cases. UK Prime Minister Boris Johnson announced that England will adopt a second national lockdown beginning on Thursday, to try to stem the rapid rise in cases and hospitalisations due to the virus.
Keshav Lahoti, Associate Equity Analyst, Angel Broking said,"Global cues were supportive: Dow Futures, Nasdaq Futures and FTSE were up by 1.4%, 1.0% and 0.7% respectively. We expect volatility to continue in the market on the basis of results reported by the companies and global news around US election and coronavirus cases
Worldwide, there were 468 lakh confirmed cases and 12 lakh deaths from COVID-19 outbreak. In India, coronavirus cases crossed 82-lakh mark with total deaths standing at 1.22 lakh.
S Ranganathan, Head of Research at LKP Securities said,"Ahead of the US elections, we witnessed a highly volatile trading session today with Reliance giving way. However, indices managed to end in the green led by Financials which was indeed a treat to watch. Few high profile realty names were the stars in the broader market today".
On market closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said, "11700-11750 should act as stiff resistance for the Nifty. If we can get past that, there is a chance we resume the upward trajectory of the market and nullify the downside target of 11400. As long as we are below 11700, the markets are in bearish terrain. On the upside, if we get past 11750 on a closing basis, we cannot rule out the Nifty reclaiming the level of 12000 and above."
Shrikant Chouhan, Executive Vice President (Equity Technical Research), Kotak Securities said," Financials did a strong comeback and managed to recoup the losses on Indices due to a substantial fall in Reliance Industries. As we discussed, Nifty remained between the range of 11530 and 11750. It has formed an indecisive candlestick formation on a daily chart. Be stock specific for the time being. The focus should be on financials as technically, the Bank Nifty is ready to hit the level of 25500 shortly."
Meanwhile, September quarterly earnings announcements by HDFC, Cadila Healthcare, Punjab National Bank, NTPC, Cadila Healthcare, Oracle Financial, Whirlpool of India, will also set the tone for the stock market tomorrow.
On the currency front, Indian rupee depreciated 32 paise and settled at 74.42 per dollar on Monday, tracking the mixed trend in domestic equities and a strong American currency.