Markets maintain gains on global cues, auto stocks rise

Source :IANS
Author :IANS
Last Updated: Thu, Sep 17th, 2020, 09:36:13hrs
BSE Sensex

Mumbai: The Indian stock market maintained its gaining streak on the back of positive global cues along with robust buying sentiment.

The trade session on Wednesday witnessed healthy buying activity across sectors, especially in IT, healthcare, automobile and realty stocks.

However, power and telecom stocks lost some ground.

Globally, Asian markets were mixed ahead of the US Fed meet outcome later in the evening, while European stock markets edged mostly higher helped by retailers.

Consequently, the BSE Sensex closed at 39,302.85, higher by 258.50 points or 0.66 per cent from its previous close.

The Nifty50 on the National Stock Exchange ended the day's trade at 11,604.55, higher by 82.75 points, or 0.72 per cent, from the previous close.

"Indian markets opened marginally higher and remained rangebound till about noon. Post this, they gradually began to rise," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"Reliance rose with volumes. Traders came back to large caps after enjoying a two-day rally in the small and mid cap space," he added.

Besides, Jasani also pointed out that while addressing the Ficci National Executive Committee meeting, Reserve Bank of India Governor Shaktikanta Das assured that the central bank is closely monitoring the economic situation and is prepared to take further measures to prepare the economy and banking system to fight the Covid-19 pandemic.

"These reassuring statements helped Nifty to rise towards the recent highs. The Nifty has moved above the recent resistance of 11,584. Sustaining above this level could mean more upsides in the near term," he said.

According to Geojit Financial Services Head of Research Vinod Nair: "Benchmark indices ended the day with gains, with most sectoral indices contributing to the gains. However, the continued border tensions and unabated virus infections limited the gains.

"Global cues were also positive as participants awaited policy statement from the US FOMC meeting. Any indication of increased bond-buying will be a positive trigger for the markets. The markets are expected to be in sync with global cues on Thursday. The upsides seem to be limited, considering the lack of fresh domestic triggers for the market."