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Global cues lift equities; IT stocks surge
Mumbai, March 10, 2021
Robust global cues along with healthy buying interest in IT and metal stocks lifted India's benchmark equity indices for the third consecutive session on Wednesday.
Accordingly, the key indices had a gap-up opening and soon made intra day highs.
Later on they remained range-bound with a positive bias.
Notably, volumes on the NSE were much below recent averages hinting at limited institutional participation as such FIIs pulled out Rs 15.69 crore.
Among sectors, metals, IT, pharma, auto gained the most while PSU bank fell marginally.
Globally, Asia-Pacific markets traded mixed as some markets struggled to hold onto earlier gains.
Similarly, European stocks were mixed struggling to build on the momentum seen earlier in the week.
On the domestic front, Nifty opened gap up led by positive global cues but came off by afternoon on the back of weakness in index heavyweights like Reliance Industries, HDFC Bank and Kotak Mahindra Bank.
Consequently, the S&P BSE Sensex rose by 254.03 points, or 0.50 per cent, to 51,279.51 points from the previous close of 51,025.48.
The NSE Nifty50 on the National Stock Exchange closed at 15,174.80, up by 76.40 points, or 0.51 per cent, from its previous close.
"Nifty managed to close in the positive amidst lower volumes... Advance decline ratio improved," said Deepak Jasani- Head of Retail Research at HDFC Securities.
"Nifty could now face resistance at 15273, while 15092-15126 band could provide support on Friday."
According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services: "Global cues were positive as bond yields pulled back following a well-received US debt auction, thus easing concerns about rising inflation."
"The US House of Representatives voted to advance President Joe Biden's $1.9 trillion Covid-19 relief Bill, clearing the way for the measure to be considered on Wednesday, when it is expected to pass."
In addition, Vinod Nair, Head of Research at Geojit Financial Services: "Domestic markets mirrored positive cues from its global peers, tracking gains from the US market as bond yields pulled back easing concerns about rising inflation."
"Buying interest was broad-based led by IT, pharma and metal stocks."