Hopes of healthy macro-data buoy indices; banking stocks rise
Bombay Stock ExchangeIANS (File photo)

Hopes of healthy macro-data buoy indices; banking stocks rise

Mumbai, August 12, 2021

Faster economic recovery on hopes of healthy macro-economic data buoyed India's key equity market indices on Thursday.

Initially, markets had a gap up opening and gradually moved up through the morning to touch record high levels.

The NSE Nifty50 touched a record high of 16,375.50, while S&P BSE Sensex reached 54,862.2 points during the session.

On global level, positive sentiments on account of lower US inflation data and better than expected UK GDP numbers were somewhat spoiled by China's regulatory crackdown on internet insurance companies.

In domestic markets, power, capital goods, and IT sectors gained the most.

Consequently, the S&P BSE Sensex closed the day's trade at 54,843.98, higher by 318.05 points or 0.58 per cent from its previous close.

The NSE Nifty50 ended the session at 16,364.40, higher by 82.15 points or 0.50 per cent from its previous close.

"Nifty broke upwards, as expected, post a 6-day range close. The advance decline ratio has turned sharply positive bringing relief to market participants. Broad market indices like smallcap and midcap indices have outperformed the Nifty," said Deepak Jasani, Head of Retail Research, HDFC Securities.

"There could be a day or two of follow-up upmove for the Nifty (though gradual) while the broader markets continues its upward retracement."

According to Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services: "Post lower inflation data, investors are now awaiting US weekly jobless data as the recovery in the labor market is also an important parameter for Fed to decide on its tapering action."

In addition, Geojit Financial Services' Research Head Vinod Nair: "Market breadth continued to be skewed in favour of the bulls amidst mixed global cues and strong support from IT, power and utility stocks."

"Chinese jitters over tightening regulatory scrutiny of online insurance companies were outweighed by the slowdown in pace of the US inflation data and rebound in UK GDP numbers."

IANS

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