Q2 results buoy equities; metal stocks rise
Bombay Stock ExchangeIANS (File photo)

Q2 results buoy equities; metal stocks rise

Mumbai, October 18, 2021

Healthy buying in metals as well as IT sectors' counters buoyed India's equity market on Monday.

In the process, the S&P BSE Sensex made an intraday high of 61,963.07 points and the NSE Nifty50 touched 18,543.15 points.

The current bull-run became the longest winning streak for the equity market since August 31.

The two indices -- S&P BSE Sensex and NSE Nifty50 -- had a gap-up opening and held on to their gains encouraged by healthy quarterly results.

Globally, Asian markets were largely down following inflation worries due to surging energy prices and slowing growth in China.

Similarly, European markets headed lower on Monday morning in London, compounding jitters following GDP data in China that missed expectations.

On the domestic front, volumes on the NSE crossed Rs 1 lakh crore mark, power, metals and IT were the main sectoral gainers whereas healthcare and telecom were the main losers.

The 30-scrip sensitive index traded at 61,765.59 points, up 459.64 points, or 0.75 per cent.

The NSE Nifty50 traded at 18,477.05 points, up by 138.50 points or 0.76 per cent.

"Nifty rose on very high volumes. Advance decline ratio closed in the positive towards the day end but was lower than the morning levels," HDFC Securities' Head of Retail Research, Deepak Jasani, said.

"Nifty is now overbought on daily charts. Tuesday is the eighth day in this uptrend and eight is also a 'Fibonacci number' that could denote a change in trend for the near term. The 18,600-mark on the Nifty is anyway a resistance while 18,350 is a support."

Motilal Oswal Financial Services's Head, Retail Research, Siddhartha Khemka said: "Festive mood continued to remain in Dalal Street with markets touching new highs. Positive sentiments globally and good quarterly corporate results have kept the investors' interest sanguine."

"Rise in global commodity prices continued which supported metals stocks while raising fears of adverse impact on inflation and interest rate."

Geojit Financial Services' Head of Research Vinod Nair said: "The domestic market traded at record highs withstanding the weak trends in the global market due to disappointing Chinese GDP numbers and global inflationary pressure as a result of energy shortage."

"Chinese GDP grew by just 4.9 per cent during the July-September quarter owing to lower than expected growth in industrial activity. However, the trend in the Indian market was bullish as PSU banks, metals, IT and energy stocks took charge of the rally."


Related Stories

No stories found.

Latest Stories

No stories found.

Trending Stories

No stories found.