Markets rise on value buy, global cues; banking stocks rise
Bombay Stock Exchange

Markets rise on value buy, global cues; banking stocks rise

Mumbai, December 24, 2020

A buying spurt, right after a short-lived intra-day correction along with positive global cues and foreign inflows, pushed the Indian equity market higher during the late-afternoon trade session on Thursday.

The two indices had a "gap up" opening and rose some more but fell thereafter to make an intra-day low.

Globally, Asian shares ended mostly higher on Thursday after stocks registered small gains on Wall Street following a mixed set of reports on the economy.

Similarly, European stocks gained as the UK and the European Union closed in on a free-trade deal and investors wagered on a global economic recovery.

Among sectors, IT and pharma were the main gainers while PSU bank, media, metals and auto were leaders. Broad market indices like smallcap and midcap indices underperformed with smaller gains.

On Thursday, the foreign investors pumped in liquidity worth Rs 1,225.69 crore.

Consequently, the Sensex gained 46,973.54 points, up 529.36 points, or 1.14 per cent, from its previous close.

The Nifty50 rose to 13,749.25 points, up 148.15, or 1.09 per cent, from its previous close.

"Institutional participation will be lower in the coming week due to year end and Christmas considerations," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"Nifty has closed almost at the intra-day and intra-week high raising hopes of a better opening on Monday. However it could run into profit taking later in the week."

Vinod Nair, Head of Research at Geojit Financial Services, said: "Momentum in European markets in hopes of a Brexit deal also helped Indian indices to trade higher, financials and the pharma sector contributed to the rally."

"Volatility noticed at the start of the week vanished by the end of the week as concern over new strain of virus reduced, development on the US stimulus and vaccination."

S. Ranganathan, Head of Research at LKP Securities, said: "Ahead of a long weekend and a tranche of expected rural stimulus, bulls were in complete control, buoyed by a stellar listing of Bector Foods. Financials and pharmaceuticals led the rally while investors bought into insurers and consumer durable names across the broader market."

IANS

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