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Stock market closes in green as liquidity, global cues lift sentiments
Mumbai, August 19, 2020
The Indian equity market closed on a positive note during Wednesday's trade session on the back of healthy liquidity along with positive global cues.
Accordingly, after a gap-up opening, the indices faced volatility due to profit booking till buying picked up again in the latter half of the day's trade session.
Sector-wise, top gainers were the BSE Telecom, Realty, Bankex and Oil and Gas indices, whereas the top losers included BSE IT, FMCG and Healthcare indices.
Globally, major Asian markets closed on a mixed note. However, European indices like the FTSE, CAC and DAX ended higher.
The NSE Nifty50 closed at 11,408.40, up by 23.05 points, or 0.2 per cent, from its previous close.
The Sensex closed at 38,614.79, higher by 86.47 points, or 0.22 per cent, from the previous close of 38,528.32.
"Technically, with the Nifty moving higher after breaking out of the recent highs of 11,374 on Tuesday, the uptrend looks set to continue. Short term trend reversal levels remain at 11,291.
"Nifty could not build on the gains made on August 18; however a positive close and a good broader market keeps hope alive for bullish traders for tomorrow," said a market analyst.
According to Vinod Nair, Head of Research at Geojit Financial Services: "Ever present fears regarding the Covid-19 impact on economic recovery brought about volatility in the global markets, despite US markets surging to record highs. Indian indices also exhibited this volatility before closing the day with a positive bias."
"Banking index again led the gains. The gains in the Indian market, a s in the global markets, have been driven by ample liquidity and the expectation of normalisation of business supported by government measures, in a post Covid-19 scenario. However, investors must continue to remain stock specific and use the accumulation strategy for the time being."
In addition, Rahul Sharma, Market Strategist & Research Head, Equity99 Advisors said: "Profit-booking in the mid-trading session saw the markets giving up the early gains today."
"Today's rally was led by state-owned banks and index heavyweight Reliance Industries. Positive clues in other Asian and European markets aided the rally."