Mumbai, (Asian independent) The key Indian equity indices rose for the 10th consecutive session on Tuesday as investors bought into declining buy stocks.
The market’s up move came after global cues had subdued investors’ sentiments during the initial phase of the day’s trade.
Globally, most Asian markets reversed early losses, as hopes for a positive economic outlook outdid worries over a coronavirus surge, new lockdowns, a slow vaccine rollout and uncertainty over US Senate elections.
Similarly, volatility struck European stocks on Tuesday morning as investors monitored the coronavirus pandemic and the imposition of further restrictions, along with a US Senate runoff election in Georgia.
Among sectors, IT, banks and media were the main gainers while metals and realty were the losers.
The NSE Nifty50 closed at 14,199.50 points, higher by 66.60 points, or 0.47 per cent, from its previous close.
The BSE Sensex also made gains. It closed higher by 260.98 points, or 0.54 per cent, to 48,437.78 points from its previous close.
“The momentum is still strong and some more upsides (more in the broader market than the index) is likely over the next few days,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
Motilal Oswal Financial Services’ Retail Research Head Siddhartha Khemka said: “Volatility needs to sustain below 20 zones to support the bullish market setup and fuel the next rally with the higher market base.”
“Going ahead, the market momentum is likely to continue on the sustained inflows and improving macros trends. Global cues will be watched closely for the further trend in the market. Rising cases of Covid in UK and EU can turn a spoil sport with increasing cases of lockdowns going forward.”
Vinod Nair, Head of Research at Geojit Financial Services said: “Based on the historical standards of valuation today, equities are at rich level. But these levels are easily extended or cannot be comparable due to one-time economic euphoria from early vaccination, high double digit earnings growth and high liquidity in the market.”
“The ongoing Indian rally is supported by the anticipation of Q3 result, on earnings front we expect green shoots due to uptrend in economic activity and record collections in GST.”