Hopes on healthy Q3 season, global cues pushes market to record highs

Source :IANS
Author :IANS
Last Updated: Mon, Jan 11th, 2021, 07:58:41hrs
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BSE Sensex

Mumbai: Favourable global cues, along with positive domestic macro economic data and expectations of a healthy earning results' season, pushed the Indian equity indices higher on Friday.

The Nifty opened at record highs and continued its positive momentum throughout the day's trade session.

Globally, Asian shares rose to record highs on Friday with Japan's Nikkei hitting a three-decade peak.

Similarly, European markets traded higher on Friday as global investors anticipated that a Democratic-controlled US government will lead to greater fiscal support.

On the domestic front, equity markets were boosted by hopes of economic recovery amid coronavirus vaccine optimism and expectations of more US stimulus.

Among sectors, auto, IT, media and pharma were the main gainers, while metals and PSU banks were the main losers.

Consequently, the S&P BSE Sensex closed at 48,782.51 points, higher by 689.19 points, or 1.43 per cent, from its previous close.

The NSE Nifty50 closed at 14,347.25 points, higher by 209.90 points, or 1.48 per cent, from its previous close.

"The results season began today with TCS coming out with its Q3FY21 numbers. As more companies come out with their numbers, the focus could shift from index to individual stocks and peer stocks," said Deepak Jasani, Head of Retail Research at HDFC Securities.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said: "Going ahead, the global cues will be watched closely for the further trend in the market. Investors would also track the vaccine rollout in India post the dry run, the December quarterly results which kick starts from Jan 8 and the Union Government Budget on Feb 1."

"As the long term market structure remains positive, we would advise investors to adopt the 'Buying on Dips' strategy to accumulate quality stocks."

Commenting on the day's trade, S. Ranganathan, Head of Research at LKP Securities, said: "IT and auto stocks pulled their weight today ahead of TCS earnings as bulls went berserk, lifting Indices by 1.5 per cent buoyed by positive global cues."

"An array of high quality midcaps across sectors registered smart gains as mood remained buoyant through the day."

Vinod Nair, Head of Research at Geojit Financial Services, said: "Support from strong global indices also helped in raising domestic market sentiments. The official certification of (Joe) Biden's presidency by the US Congress and easing of the political unrest as Trump promised a smooth transition of power, have created an upbeat movement in the western market."

"The focus of Indian markets has shifted to third quarter earnings, forward ignoring high valuations."
 

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