Benchmark indices closed on a bullish note for the fifth straight session on Wednesday amid positive global cues. After a volatile trading session, the 30-share benchmark BSE Sensex ended 304 points higher at 39,878 and NSE Nifty50 index gained 76 points to 11,738. Yesterday, Sensex ended 600 points higher to 39,574 and Nifty gained 159 points to settle at 11,662.
Titan, ONGC, Bajaj Auto, Maruti, Reliance Industries, HUL and UltraTech Cement were among the top gainers. On the other hand, Bajaj Finance, followed by Bajaj Finserv, IndusInd Bank, ICICI Bank, Kotak Bank and Axis Bank were among the top losers today.
On the sectoral front, the trend was mixed today as gains in auto, financials, banking, FMCG were capped by losses logged in media, metal, PSU Bank and pharma indices.
"Markets recovered quickly in morning trade and traded in the Green throughout the day led by Autos ahead of the RBI policy. Although the broader market was a bit lacklustre, we did see sustained buying in Cement and select Pharma counters during the day", said S Ranganathan, Head of Research at LKP Securities
Meanwhile, IT major Tata Consultancy Services is set to begin the Q2 results season on 7 October followed by Wipro, Infosys and HCL Tech on October 13, 14 and 16, respectively.
Vinod Nair, Head of Research at Geojit Financial Services said,"Observation is that main indices have almost reached the last high, in context with a bounce in global and domestic economy. Going ahead the market may turn a bit volatile, in the short-term, as it will be difficult to maintain the momentum given important upcoming events of the US election and Q2 result season. Stock wise positive or negative performance is expected to continue as per the expectation & actual performance of Q2FY21 result."
On the currency front, Rupee settled 13 paise higher at 73.33 per dollar amid gains in the domestic equity market ahead of the MPC meeting.
Overseas, most Asian indices except Singapore's SGX Nifty and Japan's Nikkei ended the day with gains, while European markets traded marginally in the red territory.
Keshav Lahoti, Associate Equity Analyst, Angel Broking said," Global cues were positive as Dow Futures and Nasdaq Futures were up by 0.56% and 0.43% respectively, while FTSE was flat."
Markets steadied from recent gains today after the US President Donald Trump halted negotiations with the US Congress on a large coronavirus stimulus bill till elections are over.
Stocks fell on Wall Street yesterday after President Trump quashed hopes for a fourth stimulus package with a tweet and instructed officials to stop stimulus negotiations. This comes at a time when the top US and European central bankers have called for renewed government spending, to recover major economies from the coronavirus pandemic indices recession.
Worldwide, there were 360 lakh confirmed cases and 10.54 lakh deaths from COVID-19 outbreak. India's COVID-19 caseload breached the 67-lakh mark and the death toll from COVID-19 infections rose to 10.4 lakh, as of today.
On the technical front, Nifty index closed near major hurdles today, observed at 11,707 and then at 11,752 levels. Yesterday, the index rose to 7-month closing high and as per analysts, the index has the potential to test its August month's high of 11,794 mark.
Ajit Mishra, VP - Research, Religare Broking said," Markets will first react to the TCS numbers and management commentary in early trade on Thursday i.e. October 8. A decisive breakout above 11,800 in Nifty would further fuel the rally else some profit-taking can't be ruled out."
Aamar Deo Singh-Head Advisory, Angel Broking said,"Nifty has managed to hold above its earlier resistance zone of 11600-11650 which becomes an immediate level of support now, whereas the crucial resistance is seen around the 11800-11850 mark."
On Nifty's technical view, Rohit Singre, Senior Technical Analyst at LKP Securities said, "Index closed a day at 11739 with gains of 76 points and formed a bullish candle on the daily chart. The index closed on a positive note for a fifth consecutive day, now the index has immediate hurdle around 11800 zone if managed to hold above 11800 zone then we may see a quick move towards 12k mark and good supports are still placed around 11660-11600 zone."