Benchmark indices Sensex and Nifty ended on a bullish note on Monday, led by positive cues from global equities amid strong buying sentiment in banking and financial stocks. Extending gains for the second session, Sensex ended 448 points higher at 40,431 and Nifty gained 110 points to 11,873. Last Friday, Sensex ended 254 points higher at 39,982 and Nifty gained 82 points to 11,762.
ONGC, followed by NTPC, HDFC, Axis Bank, ICICI Bank, PowerGrid and Nestle India were among the top gainers on Sensex. On the other hand, TCS, Tech Mahindra, Infosys and Sun Pharma were among the laggards. On the sectoral indices front, trend was mixed today as banking, FMCG, metal, realty indices closed in green, while auto, IT, pharma closed in the red.
Besides positive global markets, investors were also buoyed over the September quarter earnings season, that will further help in providing a clear picture of the disruption caused by the coronavirus pandemic-induced lockdown. Companies set to announce their earnings today are HDFC Life Insurance Company, Britannia Industries, ACC, L&T Technologies, Bank of Maharashtra, Rallis India and CSB Bank among others.
Ajit Mishra, VP - Research, Religare Broking said," An upbeat start to the earnings season combined with the favourable global cues has helped the markets to recover in the last two sessions. Participants are still pinning hopes on the passage of the stimulus package in the US before the election and it will remain on their radar. However, on the flip side, any adverse news on COVID-19 might again push the bulls on the back foot. We suggest maintaining a positive yet cautious approach and preferring hedged positions."
Vinod Nair, Head of Research at Geojit Financial Services said, "Market sentiments were lifted in expectation of the US stimulus package before the election and renewed hopes of a corona vaccine by year-end. So far the earnings have come in line with the expectation which supported a broad-based momentum in the market while bank nifty outperformed on account of better than expected results. The continuation of this trend along with fiscal measures from the government will enthuse the prospects of H2FY21 economic recovery".
Global equities turned positive in today's trade as positive macroeconomic data flow and hopes of a COVID-19 vaccine boosted investor sentiment. Overseas, Dow Futures and Nasdaq Futures were up by 0.7% and 1.1% respectively, while FTSE was flat.
Asian markets traded higher after China said its economy grew 4.9% in Q3, while Wall Street closed higher on Friday as investors reacted to the strong retail sales data which jumped 1.9% in September.
Investors were also buoyed by hopes of a US fiscal package before the presidential elections next month and after further clarity regarding the timeline for the development of a coronavirus vaccine.
Treasury Secretary Steven Mnuchin reportedly told that he and President Donald Trump are committed to getting a stimulus deal done and that while it will be hard to get one done before the election, they will keep trying.
S Ranganathan, Head of Research at LKP Securities said, "As we inch closer to the US Elections, the street is bracing toward volatile markets ahead. Today markets ended firmly in the Green despite profit booking witnessed in Autos & Pharma as we saw spirited buying in Financials with good support from the FMCG space".