Global cues unleash bulls in equity market, pharma stocks rally
Mumbai, December 17, 2020
Bullish global cues, with the US FOMC decision to maintain rates, lifted the key Indian equity indices for the fifth consecutive session on Thursday.
The key indices, after a "gap up" opening, reached record intra-day and closing high levels.
Globally, cues were positive on optimism over a US stimulus package and the Federal Reserve's promise to keep pouring cash into markets.
In fact, Asian stocks scaled record heights while the dollar plumbed two-year lows and oil prices hit their strongest since March.
Similarly, European markets remained at 10-month highs as potential Covid-19 vaccine rollouts strengthened the case for a global economic recovery.
Back home, NSE Nifty50 extended its gains, largely driven by positive global cues and continuous FII buying.
The foreign investors pumped in liquidity worth Rs 2,355.25 crore on Thursday, but, volumes on the NSE were below recent averages.
In terms of sectors, private banks and pharma were the main gainers while media, PSU bank and metals ended lower.
Consequently, S&P BSE Sensex closed at 46,890.34, higher by 223.88 points, or 0.48 per cent, from the previous close.
The Nifty50 ended the day's trade at 13,740.70, higher by 58 points, or 0.42 per cent, from the previous close.
"World stocks climbed new peaks and oil marched higher on Thursday as investors bought risky assets on hopes of a US fiscal stimulus and the Federal Reserve's pledge to keep pumping cash into markets," said Deepak Jasani, Head of Retail Research at HDFC Securities.
"A Brexit deal appears increasingly in focus even as all eyes are now on the Bank of England's policy rate decision on Thursday."
Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said: "High optimism over the US stimulus package and positive commentary by the Fed led to a good start which further strengthened as the day progressed."
"Going ahead, the market may continue with its positive biasedness on the back of abundant liquidity, effective vaccine rollout and increasing prospects of Brexit deal and US Stimulus."