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Home / Markets / Stock Markets /  Sensex rallies nearly 450 points, Nifty Bank surges 3%. What analysts say

Indian markets ended sharply higher today, buoyed by sharp gains in banking stocks and positive global equities. The NSE Nifty 50 index closed up 0.94% at 11,873.05, while the S&P BSE Sensex ended nearly 450 points higher at 40,431. Bank stocks led gains in the Nifty 50, with ICICI Bank shares adding 5.3% and Axis Bank ending 4.4% higher, helping the Nifty Bank Index close 3.1% higher.

Banks gained after top lender HDFC Bank reported a rise in quarterly profit. Top private-sector lender HDFC Bank ended 0.35% higher after reporting an 18.4% rise in quarterly profit on Saturday.

State-run firms also rose today after a report said the government had asked some of them to consider share buybacks. The Nifty Public Sector Enterprise sub-index ended 2.3% higher after Reuters reported the government had asked at least eight state-run companies to consider share buybacks in the current fiscal year. Shares of Coal India and top power utility NTPC added 3% and 1.7%, respectively.

Oil-to-telecoms conglomerate Reliance Industries ended flat after having surged as much as 2.4% in morning trade.

Gains in Asian and European stocks aided sentiment, as they rallied on hopes of a U.S. stimulus package before the presidential election in November and expectations of a COVID-19 vaccine by year-end.

Here is what analysts said on today's market performance:

Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments

"After opening with a gap, the Nifty did not do much thereafter. We moved in a 50-70 point range. We need to get past 12050 in order to witness a serious up move. The support lies at 11650."

Nagaraj Shetti, Technical Research Analyst, HDFC Securities

"The overall market breadth has started to improve and the broad market indices like mid and small cap segments have ended with the gains of 0.77% and 0.73% respectively. This is positive signal and suggest more upside for the broader and for the benchmark index.

The short term trend of Nifty continues to be positive. There is a possibility of further 1-2 day's of upmove before showing minor downward correction from the highs. The upper 11950-12000 is going to be a overhead resistance for the short term. Immediate support is placed at 11780."

Ajit Mishra, VP - Research, Religare Broking Ltd

"The upbeat start of the earnings season combined with the favourable global cues has helped the markets to recover in the last two sessions. Participants are still pinning hopes on the passage of the stimulus package in the US before the election and it will remain on their radar. However, on the flip side, any adverse news on COVID-19 might again push the bulls on the back foot. We suggest maintaining a positive yet cautious approach and preferring hedged positions."

Vinod Nair, Head of Research at Geojit Financial Services

"Market sentiments were lifted in expectation of the US stimulus package before election and renewed hopes of a corona vaccine by year-end. So far the earnings have come in line with the expectation which supported a broad-based momentum in the market while Bank Nifty outperformed on account of better than expected results. The continuation of this trend along with fiscal measures from the government will enthuse the prospects of H2FY21 economic recovery".


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