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Sensex ends 86 points higher, Nifty at 11,408 amid mixed global cues

Overseas, Asian markets traded in the green, although gains were limited amid renewed tensions between the US and China after further US restriction on China's tech giant Huawei. On the contrary, European markets opened bullish today, rebounding from huge losses triggered by the coronavirus pandemic

Rupa Burman Roy | August 19, 2020 | Updated 17:14 IST
Sensex ends 86 points higher, Nifty at 11,408 amid mixed global cues
As per technical indicators, Nifty has finally crossed the earlier consolidation phase of 11300-11370 zone

Domestic benchmarks ended on a bullish note on Wednesday, tracking persistent foreign fund inflows amid mixed global cues. Extending gains for the third straight session, Sensex ended 86 points higher at 38,614 and Nifty gained 23 points to 11,408. Yesterday, Sensex ended 477 points higher at 38,528 and Nifty added 138 points to close at 11,385.

Upbeat April-June quarterly earnings announcements by Muthoot Finance, CSB Bank also kept the tone for the stock market bullish today. Meanwhile, Ruchi Soya Industries, V2 Retail, Ramky Infrastructure and Tips Industries among others are to report Q1 earnings later today.

Sectorally, barring IT, FMCG, auto and pharma, all the other sector-based indices traded in the green territory today, with media index rising over 5%, followed by 2.5% rise PSU banks. SBI, followed by L&T, M&M, ICICI Bank, Sun Pharma, Axis Bank, ITC and Bajaj Auto were among the top gainers on Sensex pack. On the other hand, HCL Tech, Nestle India, Tata Steel, Kotak Bank and Infosys were among the laggards.

As per analysts, gains were capped as traders turned cautious ahead of AGR hearing in SC later today. Mixed Asian equities and rising coronavirus cases also kept domestic sentiments muted.

Worldwide, there are 223 lakh confirmed cases and 7.84 lakh deaths from COVID-19 outbreak. Meanwhile, the death toll in India crossed 53,000 mark and total coronavirus stood at 27.68 lakh as of Wednesday.

Commenting on market outlook today, S Ranganathan, Head of Research at LKP Securities said, "Today's trade was indeed different in that it can be aptly termed as a day of unusual gainers. S plethora of stocks outside the index which normally we are used to seeing trending down made bold up moves forcing investors and traders to pay attention".

Global markets

Overseas, Asian markets traded in the green, although gains were limited amid renewed tensions between the US and China after further US restriction on China's tech giant Huawei. On the contrary, European markets opened bullish today, rebounding from huge losses triggered by the coronavirus pandemic.

Wall Street indices saw record close, as many including Howard Silverblatt ( Senior Index Analyst, Product Management, for S&P Dow Jones Indices ) believed that this is the start of a new bull market. Fed in its meet cut rates to near zero to bolster business through the pandemic.

Vinod Nair, Head of Research at Geojit Financial Services said," Ever present fears regarding the Covid-19 impact on economic recovery brought about volatility in the global markets, despite US markets surging to record highs. Indian indices also exhibited this volatility before closing the day with a positive bias. Banking index again led the gains. The gains in the Indian market, as in the global markets, have been driven by ample liquidity and the expectation of normalisation of business supported by government measures, in a post-covid-19 scenario."

Valuation

For the upcoming sessions, traders will keep an eye on the minutes of the RBI monetary policy panel meeting which will be released on August 20. The foreign exchange reserves data will be released on August 21.

As per technical indicators, Nifty has finally crossed the earlier consolidation phase of 11300-11370 zone.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said," The index has held the 11350 levels for the entire trading session. There could be a brief pause after yesterday's rally. The trend continues to remain bullish and we should expect higher levels of 11500 and then 11700. Traders could use any dip as a buying opportunity."

Gold vs Reliance Industries stock: Which has given better returns in 2020 so far?

Share Market Highlights: Sensex ends 86 points higher, Nifty at 11,408; Maruti, Bharti Airtel, GAIL top gainers

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