Healthy monsoon, global cues push equity market higher

Bombay Stock Exchange.

Mumbai, (Asian independent) A healthy monsoon, along with global cues and stock-specific movements, lifted the Indian equity market on Tuesday.

Sector-wise, top gainers were BSE Realty, Bankex, CD and Metal indices, whereas top losers included the BSE Healthcare index.

Globally, major Asian markets closed on a mixed note, while European indices like FTSE and DAX ended higher.

The NSE Nifty50 closed at 11,385.35, up by 138.25 points, or 1.23 per cent, from its previous close.

The Sensex closed at 38,528.32, higher by 477.54 points, or 1.26 per cent, from the previous close of 38,050.78.

“Technically, with the Nifty rallying strongly and breaking out of the recent highs of 11,374, the uptrend looks set to continue. Short-term trend reversal levels are now at 11,291,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

“Nifty has closed at a recent high and hence the mood has turned up for the near term. As seen recently, action in individual stocks is far higher than that reflected by the index. However as the Nifty has broken the recent high, some action can now return to large-caps too.”

According to Vinod Nair, Head of Research at Geojit Financial Services: “Indian benchmark indices kept gaining strength during the course of the day, as opposed to mixed global market cues. US-China political tensions and the uncertainties over the US stimulus package kept global markets on edge.”

“In India, investors took comfort in the expectation of government spending to offset the impact of the lockdown and the progress of the Monsoon and its relation to the rural economy also improved sentiments. Gains were led by the banking index. With liquidity and expectations overcoming concerns about valuations, any consolidation in the markets have been bought into and this trend is expected to continue.”