Domestic market indices Sensex and Nifty closed on bullish note on Tuesday, despite weak global cues, on the back of heavy buying across index heavyweights. Extending gains for the third straight session, Sensex ended 112 points higher at 40,544 and Nifty gained 23 points to settle at 11,896.
On the sectoral front, barring FMCG and PSU Banks, all the indices ended in green, with metal and realty registering over 2% gains.
Among the individual stocks, HCL Tech was top gainer, followed by L&T, M&M, Tech Mahindra, Maruti, Airtel, TCS, Asian Paints. On the other hand, ONGC, Nestle India, SBI, ICICI Bank and IndusInd Bank were among the top laggards.
Ajit Mishra, VP - Research, Religare Broking said," Markets traded range bound and ended marginally higher amid weak global cues. The benchmark opened in the red but buying in the select index majors especially from IT and banking majors pared the losses in no time. It hovered range-bound thereafter and movement on the stock-specific front kept the participants busy."
Globally, equities were trading bearish today as the deadline for US lawmakers to pass an economic stimulus bill approached, while record rise in coronavirus infections in Europe ignited concerns about more severe lockdowns.
Asian markets ended lower tracking overnight weakness seen in US markets and as China left benchmark lending rates unchanged. Markets in Wall Street closed lower overnight as lawmakers struggled to reach an economic package deal ahead of Tuesday's deadline. US House of Representatives Speaker Nancy Pelosi hoped that by the end of Tuesday there will be "clarity" on whether a coronavirus stimulus bill can be passed before the Nov. 3 elections.
European markets traded lower today gains as coronavirus cases rose, fuelling concerns over a sustained global economic recovery. European Central Bank maintained an accommodative policy in response to the ongoing coronavirus crisis, ECB President Christine Lagarde said.
Worldwide, more than 406 lakh COVID-19 confirmed cases and 11.2 lakh deaths have been reported. India's COVID-19 caseload breached the 75-lakh mark and the death toll from virus infections rose to 1.15 lakh, as of today.
Commenting on markets closing today, Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments said, "The markets have entered into a range-bound zone - between 11650 and 12050. For an impulsive move to trigger, we would need to get past one of these levels on the back of good volumes. Until then traders are advised to maintain caution."
Traders said investors have also turned buoyed, awaiting Sept quarter earnings reports. Q2 earnings announcements by HUL, CRISIL, L&T Infotech, Bombay Dyeing, Granules, Hindustan Zinc, Maharashtra Scooters, Indian Energy Exchange among others will set the tone for the stock market tomorrow.
Vinod Nair, Head of Research at Geojit Financial Services said," The strength of Indian market is supported by the good Q2 results announced till date, in expectation of a further fiscal stimulus and drop in the rate of daily covid cases. To improve the breadth of the market in the future, a lot will depend on the trend of Q2 result, which has a very positive view. This buoyancy was also supported by a global trend which faded due to lack of consensus in the US to sign a fiscal package before the election and no hope of talks between EU-UK."
On the currency front, Indian rupee depreciated by 12 paise at the forex market and settled at 73.49 per US dollar on Tuesday, over its previous closing price of 73.37.
Expressing views on currency's technical outlook, Angel Broking in its note said," With voting likely to happen on the stimulus package, USDINR (CMP: 73.44) is likely to move in the range from 72.5 mark at the lower end of the spectrum and 74.5 mark at the higher end.
Copyright©2022 Living Media India Limited. For reprint rights: Syndications Today