Indian markets defy mixed global trend to end sharply higher. What experts say2 min read . Updated: 20 May 2020, 05:22 PM IST
- Sensex and Nifty 2% today despite mixed global cues
- Selling pressure can increase if Nifty breaches 8,800, say analysts
Indian stock markets ended sharply higher today after its recent spell of underperformance as compared to global markets. The Sensex jumped 622 points to settle at 30,818, outperforming other Asian markets. The Nifty settled 2.11% higher at 9,066, spurred by a rise in banking stocks and Reliance Industries. Shares in financial services firm Bajaj Finance Ltd , drugmaker Dr. Reddy's Labs and cement producer UltraTech Cement Ltd rose between 2.6% and 5.7% after their March-quarter financial results.
Shares in Reliance Industries Ltd rose 1.8% as the oil-to-telecoms conglomerate's rights issue opened today. HDFC Bank Ltd gained over 3%, while mortgage lender HDFC Ltd surged 5.66%.
The Union Cabinet today approved the launch a special liquidity scheme worth ₹30,000 crore for stressed non-banking financial companies and housing finance companies, whose financials further deteriorated due to COVID-19 crisis. This was announced as part of the first tranche of the ₹21 lakh crore comprehensive economic package.
Finance Minister Nirmala Sitharaman said the government would assess the need for further economic measures as the situation evolves.
Here is what experts said on today's market action:
S Ranganathan, Head of Research at LKP Securities
"Markets played out a perfect anti-consensus Trade today amidst utmost pessimism as Dr Reddys Labs provided bulls something to cheer about with good results".
Sumeet Bagadia, Executive Director, Choice Broking
"At present level, downside support comes at 9000-8800 while upside intermediate resistance comes at 9100, if the Index sustain above this level then we may see good upside movement up to the level of 9200-9350 level."
Vishal Wagh, Research Head, Bonanza Portfolio
"In the hope that things will get normal from June onwards, entertainment and transport stocks like IRCTC, INOX, and PVR have seen some bounceback. Dr Reddy's rallied due to better than expected numbers, the stock rallied around 6% for the day. Auto stocks have seen a good bounce back as the chances of demand to grow once some relief in lockdown will take place."
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
“Markets witnessed correction in the previous week as Nifty tested 8800-8850 on the downside. Options positions have witnessed unwinding which can result in increased volatility in the near term. Trend data suggests support at 8800 and resistance at 9400-9500 on the higher side; selling pressure can increase below 8800. Banking and metals are expected to lead in the next few weeks."
Vinod Nair, Head of Research at Geojit Financial Services.
"Benchmark indices closed up by more than 2%, in spite of mixed global cues and a spike in number of coronavirus cases across India. All the major sectoral indices traded positive with the volatility index also decreasing by around 10%. The government cabinet approvals of some of the proposed measures and leaving the door open for further stimulus measures could also have played a part in the positivity. Investors advised to remain cautious."
Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments
"The Nifty50 Index continued its intraday upward trajectory and comfortably crossed its resistance of 9030. The next levels of resistance would be 9150 and 9250 with a good base formation at 8850. This rally seems broad-based where most stocks have handsomely contributed to the rally up and good volumes have been clocked on the Nifty futures as well."