Indian stocks closed at their highest in about nine months, fueled by a widespread rally. Strong earnings from the country’s largest lender, State Bank of India (SBI), boosted banking stocks, while metals and energy stocks also joined the rally today. The NSE Nifty 50 Index rose 1.78% to close above the 12,000 mark for the first time since February 20. The S&P BSE Sensex closed more than 700 points higher at 41,340.
Encouraged by strong earnings and the forecast for higher annual credit growth, SBI shares rose 5.6% today, raising the Nifty banking index by 2.1%.
The Nifty Metals Index rose 4.4%. Tata Steel gained 5.1% and miner Hindalco was up 6%. Oil trading company Hindustan Petroleum Corp (HPCL) rose 9.9% after reporting a quarterly profit on Wednesday that beat estimates. The oil-to-telecommunications conglomerate and India’s most valuable company, Reliance Industries, rose 2.3%.
Around the world, global stock markets were higher as Democrat Joe Biden edged closer to victory in the United States presidential race as election officials counted votes in the handful of states that will determine the final score. Meanwhile, President Donald Trump has denounced fraud, filed lawsuits and called for re-counts in a race that has yet to be decided two days after the polls closed.
“Investors around the world seem happy that there is no ‘blue wave’ result in the US elections, as seen in the rebound in world markets. If Republicans occupy the Senate, they will want to stop what they see as the Joe Biden’s “spending schedule” and “uncontrolled federal debt,” which will mean less fiscal stimulus and no corporate tax increases. A divided US government is likely to be a favorable outcome for most classes. of assets, “said Deepak Jasani, director of retail research at HDFC Securities.
“Nifty crossing the recent high with an upgap and a very positive forward decline rate means a new bullish momentum could have started. Nifty could face resistance at 12246 and 12430 to the upside, while 12018-12025 could provide support in the short. term, “he added. additional.
Markets in general were also involved in today’s rally, with BSE mid-cap and small-cap indices rising 1.7% each.
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Here’s what analysts had to say about the current market performance:
Sameet Chavan from Angel Broking
“From the way we moved in the last few days, we anticipate a possible breakout in the upward direction. We have finally broken through a crucial resistance and therefore, looking at the price behavior, we expect this move north. continue towards 12250 – 12400 now. But since the actual verdict is yet to come; we cannot simply overlook this development. Traders need to closely monitor how markets react after the result. But despite this, we still believe that in case of weakness 12000 – 11900 should now act as a sheet anchor for the bulls “,
Ajit Mishra, Vice President of Research, Religare Broking Ltd
“From the way the benchmarks have risen lately, it appears that participants have already weighed in on the possibility of a clear winner in the US elections while the count is still going on. Considering the scenario, we suggest maintaining a positive but cautious approach. and continue to focus on specific stock trading. Also, keep a close eye on global markets and earnings announcements for clues. “
Manish Hathiramani, Technical Analyst and Property Index Trader, Deen Dayal Investments
“The Nifty trend continues to be positive. The 11900-11950 hurdle has been overcome convincingly thanks to very good volumes. We should be hitting the 12300-12400 targets over the course of the November series. The index is now very good support at 11500 “.
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