The Indian stock market benchmark indices Sensex and Nifty fared better, as promising results from Oxford’s covid vaccine trials boosted confidence. IndusInd Bank rose 4.8% after an RBI panel recommended far-reaching changes in the Indian banking industry, including setting a higher limit on the size of promoters’ holdings. The Nifty hit a record 12,968, before settling 0.52% at 12,926. Sensex closed 0.44% higher at 44,077.15.
AstraZeneca’s COVID-19 vaccine could be around 90% effective without serious side effects, the drugmaker said today, the latest in a series of optimistic vaccine trial results this month.
The AstraZeneca-Oxford University injection can be stored and transported in the refrigerator and does not require freezers like other vaccines, making it a relatively easier option for developing countries, including India.
Reliance Industries, India’s most valuable public company, moved forward after the country’s competition watchdog approved its deal to buy Future Group’s retail assets. Among other major Nifty 50 winners, Infosys rose 3.3% and Tata Consultancy Services added 2.4%.
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Here’s what analysts had to say about today’s market rally:
Deepak Jasani, Director of Retail Research, HDFC Securities.
“Volumes on the NSE remained high compared to recent averages. IT, pharmaceuticals, metals and real estate indices were the main winners, while banks were the main losers, although some banks rose following the group’s recommendations. RBI working on allowing changes in bank ownership.. “
“Vaccine announcements have added to the risky mood in the markets as investors eagerly awaited the end of the pandemic. The US dollar fell to lows last seen in 2018 as plans accelerated to implement a coronavirus vaccine in the US the market mood for risk assets. The dollar is down more than 11% from its all-time high in March. This helps commodity prices and Emerging equities. Nifty appears to be creeping towards the 13200-13300 mark in the coming sessions as the street continues to rave about the vaccine news. Repeated intraday recovery from lows comforts traders and investors. “
Manish Hathiramani, Technical Analyst and Property Index Trader, Deen Dayal Investments
“The Nifty went from a nervous situation this morning to green pastures in the afternoon. However, it is moving away from reaching the 13000 mark. It faces some resistance around the 12950-12970 levels, but according to the charts we should to be able to reach the 13100-13200 levels. Since we have good support at 12700, each drop can be used to accumulate long positions. “
Vinod Nair, Head of Research at Geojit Financial Services
“The RBI’s proposal to consider that the NBFCs would become banks and to increase the participation of promoters in private banks to 26% was taken as positive markets. In general, bank stocks are re-rated, assuming a renewal in credit growth and a drop in NPAs going forward, the positive vaccine update reiterated hopes for a faster economic recovery next year. Domestic markets benefited from their global peers, which were mainly reflected in the IT and pharmaceutical sectors “.
Ashis Biswas, Head of Technical Research, CapitalVia Global Research Limited.
“The market continues to witness a lack of momentum and held in the 12750-12950 range. It is prudent to wait for a decisive breakout above 13040 and for technical factors to improve before going long. As such, We remain cautious and advise traders to refrain from building a new long position until we see further improvement and a break above 13040. “
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