Fund inflows, banking sector lifts equity markets
Mumbai, November 2, 2020
Foreign fund inflows, along with healthy quarterly results in the banking sector, lifted the Indian benchmark equity indices on Monday.
Both the key indices broke their three-day losing streak to end higher.
On the global front, shares recovered from one-month lows on Monday as upbeat Chinese and European PMI data offset new lockdowns in Europe, even as investors prepared for more volatility arising from the US presidential election.
Back home, volume on the NSE was above recent average.
Besides, the foreign fund inflows stood at Rs 740 crore. In the month of October, FIIs had bought Rs 15,000 crore worth of shares.
Among sectors, except banking and FMCG, all indices ended in the red.
In a positive development, India's PMI manufacturing reading for October 2020 came in at the highest level in more than a decade as sales continued to surge.
The Nifty50 on the National Stock Exchange closed at 11,669.15, higher by 26.75 points, or 0.23 per cent, from its previous close.
The Sensex closed at 39,757.58 points, higher by 143.51 points, or 0.36 per cent, from its previous close of 39,614.07.
"Markets have shown some signs of stability ahead of the US Presidential elections, however a negative advance decline ratio does not give enough confidence," said Deepak Jasani, Head of Retail Research at HDFC Securities.
"Nifty could face resistance in the 11,775-11,810 band while 11,608 could provide support in the near term."
Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: "Global markets recovered from their one-month lows as upbeat Chinese data offset new lockdowns in Europe, while investors prepared for more volatility arising from the US presidential election."
"Chinese factory activity has expanded at its fastest pace in a decade while UK became the latest country in the region to announce a fresh lockdown. On the domestic side, gains in Nifty was led mainly by banking and financials stocks - ICICI Bank, IndusInd Bank and HDFC climbed 6 per cent each on better-than-expected earnings."
"However, major selling witnessed in heavyweight Reliance Industries capped the gains. RIL recorded biggest one-day fall in over 7 months, dropping 9 per cent after earnings. On the other hand, Bharti Airtel moved 5 per cent higher as it performed better than peers in Q2."