Hopes on faster vaccine roll-out buoy markets, banking stocks' rise
Bombay Stock ExchangeFile photo

Hopes on faster vaccine roll-out buoy markets, banking stocks' rise

Mumbai, January 1, 2021

Expectations of an expedited roll out of anti-Covid vaccine along with hopes on faster economic recovery lifted the Indian equity market on Friday.

It was widely expected that India's drug regulator would approve at least one of the anti-Covid vaccines on Friday.

Besides, healthy automobile off-take numbers for December reposed investors' belief in a faster economic recovery.

Additionally, there were marginal FII inflows into India worth Rs 506.21 crore on Friday as none of the major Asian and European markets traded on January 1, 2021.

Back home, the market had a gap-up opening and remained in a narrow range for the rest of the session.

However, volumes on the NSE were the lowest since April 1, 2020 suggesting low participation.

Among sectors, PSU Bank, IT and auto gained the most while bank Nifty and consumer durables ended in the negative.

Broad market indicators rose more than the Nifty.

The NSE Nifty50 closed at 14,018.50 points, higher by 36.75 points, or 0.26 per cent, from its previous close.

Similarly, the BSE Sensex ended the day's trade on a psoitive note. It gained 117.65 points, or 0.25 per cent, to 47,868.98 points from its previous close.

"Nifty has finally managed to close above 14,000. Advance decline ratio is sharply in the positive suggesting higher interest in broader markets," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"The uptrend in the market is maturing after the Nifty ended up for the ninth consecutive week; however there are no signs of immediate reversal."

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said: "While some markets are closed for New Year holiday, overall positive sentiments continue on the back of the fresh stimulus announced, Brexit deal and hopes that the ongoing vaccine rollout would bring better days in the coming year."

"On the domestic side, Strong FIIs inflow continue to support the positive sentiments. Nifty gained marginally on range-bound trend while stock specific action was witnessed throughout the day. Power, NBFC, Pharma and PSU Banking stocks were in focus. Select auto stocks like Maruti and Escorts gained after announcing better than expected December sales data."

"Going ahead, the market momentum seen in the last couple of months is likely to continue on the back of strong global cues, sustained inflows, and improving macros trends. The December quarterly results and Union Budget around 1st Feb will be some of the key event for the market," Khemka said.

IANS

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