Nifty hits new intra-day high, IndusInd Bank surges 5%. What analysts say2 min read . Updated: 23 Nov 2020, 05:21 PM IST
- IndusInd Bank climbed 4.8% after a RBI panel recommended wide-ranging changes to India's banking industry
- Reliance Industries, India's most company, advanced 2.7%
Indian stock market benchmarks Sensex and Nifty finished higher as promising trial results of Oxford covid vaccine boosted the sentiment. IndusInd Bank climbed 4.8% after a RBI panel recommended wide-ranging changes to India's banking industry, including setting a higher cap for the size of promoters' stakes. The Nifty hit a record high of 12,968, before settling 0.52% up at 12,926. The Sensex ended 0.44% higher at 44,077.15.
AstraZeneca's COVID-19 vaccine could be around 90% effective without any serious side effects, the drugmaker said today the latest in a string of upbeat vaccine trial results this month.
The AstraZeneca-Oxford University shot can be stored and transported in the fridge and does not require freezers, like other vaccines, making it a relatively easier option for developing nations including India.
Reliance Industries, India's most valuable public company, advanced after the country's competition watchdog approved its deal to buy Future Group's retail assets. Among other major gainers on the Nifty 50, Infosys rose 3.3% and Tata Consultancy Services added 2.4%.
Here is what analysts said on today's market rally:
Deepak Jasani, Head of Retail Research, HDFC Securities.
"Volumes on the NSE remained high compared to recent averages. IT, Pharma, Metals and Realty indices were the main gainers while banks were the main losers even though some Banks rose following the recommendations of the RBI working group on allowing changes in ownership of Banks."
"Vaccine announcements have added to the risk-on mood in markets as investors looked forward to the end of the pandemic. The US dollar dropped to low levels last seen in 2018 as fast-tracked plans to roll out a coronavirus vaccine in the U.S. supported the market mood for risk assets. The dollar has fallen more than 11% from its record high in March. This helps prices of commodities and emerging equities. Nifty seems to be inching towards the 13200-13300 mark over the next few sessions as the street continues to get excited by vaccine news. Repeated intraday recovery from the lows comforts the traders and investors."
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
"The Nifty moved from a nervous situation this morning to green pastures by the afternoon. However, it is shying away from hitting the 13000 mark. It is facing some resistance around the 12950-12970 levels but based on charts we should be able to achieve the levels of 13100-13200. Since we have good support at 12700, every dip can be utilized to accumulate long positions."
Vinod Nair, Head of Research at Geojit Financial services
"RBI’s proposal to consider NBFCs to be converted into banks and to raise promoters stake in private banks to 26%, was taken positive markets. Generally, banking stocks are re-rating, assuming revamp in credit growth and fall in NPAs going forward. Further, positive update on vaccine reiterated hopes of faster economic recovery next year. Domestic markets gained from global peers, which were mainly reflected in IT and pharma sectors."
Ashis Biswas, Head of Technical Research, CapitalVia Global Research Limited.
"The market continues to witness a lack of momentum and stayed in the range between 12750 to 12950. It is prudent to wait for a decisive breakout above 13040 and technical factors to improve before going long in the market. As such we retain our cautious stance and advise the traders to refrain from building a fresh buying position until we see further improvement and breakout above 13040."