Positive Q2 and Blue wave nudges Indian indices to 8 month high

Source :Sify
Author :Finance Desk
Last Updated: Fri, Nov 6th, 2020, 04:46:45hrs
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Mumbai: The blue wave resulted in a green surge across Indian indices. The 30 scrip sensitive BSE Sensex posted a 1.74 percent or 724.02 point gain to settle at 41,340.06. On the National Stock Exchange, the Nifty50 scored by a similar gain - up by 211.80 points to close at 12,120.30.  

The trading session was largely bullish with the BSE barometer reading 1,746 stocks advancing against a decline of 912 stocks. On the benchmark Sensex, all stocks turned in the green. IndusInd Bank, SBI, PowerGrid, Reliance and Bajaj Finance were among the volume contributors. This is the third day on the trot that IndusInd bank counters have witnessed such volumes.  

PowerGrid counters saw a volume of 1.48 crore shares, while SBI posted second best trading volume of 1.21 crores.  

On a broader side, the BSE small cap index posted a 2.02 percent gain, slightly higher than the BSE Sensex and Sensex 50. Sector-wise, Metal, Utilities, Oil & Gas, Energy and Banking stocks were among the top gainers. The only odd index was the BSE Realty index which slipped by -0.55 percent -- the slump attributed to a slip in stocks of Godrej Properties and Oberoi Realty.  

The trading sentiment was largely driven by the prospects of a blue wave as well as healthy Q2 numbers posted by banks, heavyweights. A bump in foreign fund inflows was also a reason. Vinod Nair, Head of Research at Geojit Financial Services: "Domestic market moved in tandem with the global market and marched to 8 months high, in expectation that the US presidential election is moving in favour of the Democratic Party."

"Further, investors are expecting new supportive measures from ongoing Fed policy meet while keeping rates unchanged. Positive result season and increasing inflows from foreign markets will help the market to maintain its optimism going forward."

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "On the domestic side, Nifty registered a highest daily close since 19th Feb 2020 with cheerful mood above psychological 12K mark. Reliance Industries, SBI and Bajaj Finance contributed the most gains. Metal index saw highest surge with a strong show on Tata Steel, Hindalco and SAIL."

"The banking index rose for a fourth straight session, extending a rally that started after private-sector lender ICICI Bank reported a higher profit last week."

The movement on the Nifty is likely to head upwards. Deepak Jasani, Head of Retail Research at HDFC Securities in a note said, "Nifty could face resistance at 12,246 and 12,430 on the upside while 12,018-12,025 could provide support in the near term."

He added, "Nifty crossing the recent high with an upgap and a very positive advance decline ratio mean that a fresh upthrust could have begun..."

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