Sensex rises over 250 points but ends week lower. Key events to watch out for2 min read . Updated: 16 Oct 2020, 06:20 PM IST
- Analysts say markets could be choppy in near term
- US elections, progress on the US fiscal stimulus and earnings announcements from Indian corporates are key events to watch out for, they say
Indian shares ended higher today after a sharp selloff in the previous session, helped by gains in metal and banking stocks. The NSE Nifty 50 index closed up 0.7% at 11,762.45, while the S&P BSE Sensex ended 254 points higher at 39,982.98. Both indexes ended however the week 1.3% lower.
Leading the gains on Friday, the Nifty metals index rose 4% as shares of Tata Steel and JSW Steel gained 5.3% and 6.7% each. The Nifty Bank index ended 2% higher, recovering from a slide in the previous session as shares of HDFC Bank and Axis Bank gained 2.9% and 1.9% respectively.
The Nifty IT index ended 0.14% lower, weighed by 7% slide in MindTree after the IT firm's revenue growth for the second quarter disappointed markets.
Here is what analysts said on today's market performance:
"Despite mixed global cues, the benchmark witnessed a positive start, followed by the range-bound move till the end. Amid all, movement on the stock-specific front kept the participants busy wherein the metal and select banking stocks witnessed a strong rebound.
Indications are in the favour of consolidation in Nifty thus we suggest continuing with the stock-specific trading approach and maintaining positions on both sides. Meanwhile, global cues will be on the radar as US elections are just around the corner as well as the second wave of Covid-19 infection has led to more lockdown and restriction. Any further rise in restrictions could severely impact investors’ sentiments."
Sanjeev Zarbade, VP PCG Research, Kotak Securities
“The BSE-30 Index declined 1.3% in the current week. The market witnessed a slight correction as sentiments turned cautious on rising number of Covid-19 cases globally, despite domestic cases coming under control, and fading hopes of US fiscal stimulus. Infosys and TCS came out with good set of numbers while that of Mindtree disappointed the investors. Going into the next few weeks, the key events are the US elections, progress on the US fiscal stimulus and earnings announcements from Indian corporates. Valuations are not attractive. Hence, investors should trade with a cautious bias as after the swift rise in markets, there could be sharp corrections. Risk could be resurgence of Covid-19 in India."
Deepak Jasani, Head of Retail Research, HDFC Securities
"Volumes on the NSE were just below the recent average with Metals, Banks, Realty and Pharma indices gaining. Broader market indices gained more than the benchmark indices. Recovery in the markets today has brought life back to traders. Now Nifty will have to cross 11800-11880 to make an attempt at a new high while 11661 would be a crucial support."
Vinod Nair, Head of Research at Geojit Financial Services
"Although, Indian economy is expected to contract as per IMF’s latest forecast, green shoots are visible across industry segments like affordable housing, agriculture equipment & consumer products. We believe markets are in a correction phase due to a quick bounce of the market, to near to the pre-covid level. It has brought some volatility, which may stay for some more time. For Nifty 50 a strong support level is 11,500 to 11,300, which should limit the downside. The market will look forward, with high hopes on Q2 results, an end to the moratorium saga and update on stimulus plan. "