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Banking, blue chip buy-ins lift equity markets
Mumbai, August 4, 2020
Healthy buying in the banking sector as well as in the auto sector pushed the Indian equity market higher on Tuesday.
The market ended sharply higher on Tuesday after four sessions of losses.
Even though the two key indices opened on a shaky note, buying at lower levels stabilised and pushed the market's trajectory higher.
Sectorally, the top gainers were the BSE Realty, Bankex, Auto, Healthcare and Metal indices, whereas BSE IT index lost some ground.
Major Asian markets had closed on a positive note.
Index-wise, the NSE Nifty50 closed at 11,095.25, up by 203.65 points or 1.87 per cent from its previous close.
The Sensex closed at 37,687.91, higher by 748.31 points or 2.03 per cent from the previous close of 36,939.60.
It had opened at 37,092.86 and touched an intra-day high of 37,745.60 and a low of 36,987.73 points.
"Technically, with the Nifty bouncing back sharply after finding support at the 200 day SMA, the bulls seem to have made a comeback," said Deepak Jasani, Head of Retail Research at HDFC Securities.
"Further upsides are likely once the immediate resistance of 11,150 is taken out. Crucial supports to watch for resumption of weakness are at 11,000."
According to Vinod Nair, Head of Research at Geojit Financial Services: "Indian benchmark indices ended the day with gains with positivity emerging post the RBI decision to approve the new CEO for HDFC Bank. Private banks and RIL supported the gains in the benchmark indices. Global cues were also mostly positive, and aided the markets, following better US manufacturing data."
"With Indian exports reaching almost the same level on a YoY basis, economic activities are showing signs of revival which offset concerns about the increasing virus infections and the uncertainties that this brings across. The markets may look to consolidate, but as things stand, the current liquidity can ensure that any corrections will be bought into."