Sensex and Nifty closed on a bullish note on Thursday, tracking gains in financial stocks amid positive cues from global markets. Sensex ended 408 points higher at 36,737 and Nifty gained 107 points to 10,813.
Traders said domestic markets followed optimistic sentiments from global equities, shrugging off concerns over the rising number of COVID-19 cases and its impact on economic recovery. Asian counterparts bounced back from lows and were trading back in positive territory, tracking gains from Wall Street
Tata Steel, IndusInd Bank, Bajaj Finance, ICICI Bank, M&M, SBI and Axis Bank were among the top gainers today. On the other hand, Maruti, Reliance Industries, TCS and Titan were among the laggards. Sectorally, except FMCG, all the sector-based indices closed in green territory, with metals and Financials gaining over 1.5% each.
Commenting on today's rally, S Ranganathan, Head of Research at LKP Securities said,"Prime Minister's thoughts on India emerging as a transformative open economy provides confidence to investors as the street closed positive in today's session."
Vinod Nair, Head of Research at Geojit Financial Services at Geojit Financial Services said, "In spite of rising concerns regarding the spread of the virus infections, markets continued to focus on the path to recovery in the economy. With the lockdown and the economic activity coming to a standstill in the last quarter, investors will be looking forward to the earnings commentary, to understand the outlook."
Asian markets were trading higher on Thursday as investors awaited June CPI inflation from China. Wall Street closed higher despite coronavirus cases continuing to rise in the US. European markets traded mixed today as rising coronavirus cases in most parts of the world continued to cast doubt of economic recovery.
Meanwhile, investors will also await the start of Q1 earnings season, with Tata Consultancy Services (TCS) announcing its financial numbers for June quarter. Besides this, official data on industrial production, and retail, as well as wholesale inflation, will be released this week.
As for Nifty technical outlook, the index managed to close above a known resistance of 10,800 level. Ruchit Jain, Senior Analyst - Technical and Derivatives, Angel Broking said," For the near term, support for Nifty is placed around 10670 whereas resistances are seen around 10900 and 11000. A move beyond the above mentioned boundaries would then lead to the next leg of trended move and till then, traders are advised to continue to trade with a stock specific approach."
On the currency front, the Indian rupee closed stronger at 74.99 per dollar as against the earlier closing of 75.01 per dollar.
Worldwide, the number of cases linked to the Covid-19 disease has crossed 1.20 crore and the death toll has topped 5.48 lakh. In India, the number of infections spiked to 7.67 lakh and the death toll rose to 21,129.