By Indian stock markets today closed at record highs as the rally extended to the sixth day. Democrat Joe Biden’s win in the U.S. election led to a weaker dollar, fuelling hopes for more fund inflows into emerging markets. IT stocks gained as many market participants believe that the Biden regime would spell good news for IT Indian companies. The Nifty closed up 1.61% and the Sensex index ended over 700 points higher. Both the indexes rose to all-time highs during the session, scaling 42,645.33 and 12,474 respectively.
The US dollar hit a 10-week low today as investors heralded Joe Biden’s election as US president, raising expectations that a calmer White House could boost global trade and foster easy monetary policy.
The Nifty IT index rose as much as 2% with IT sector heavyweight Infosys gained nearly 3%. Banking stocks were also among the session’s top gainers. The sector’s main sub-index rose about 2.7% and closed higher for a sixth consecutive session. Private-sector lender ICICI Bank and Axis Bank closed up 4.9% each.
Drugmaker Divi’s Labs advanced 5.4% after the company on Saturday reported a higher profit for the September-quarter.
NIFTY IT
Here is what analysts said on today’s market performance:
Ajit Mishra, VP – Research, Religare Broking Ltd
“Markets have seen decent run up and reached to the record highs as well, driven by better than expected earnings so far, supportive global cues and improving macro data. Further, the on-going corporate earnings, domestic economic data (IIP and CPI) and Bihar election outcome will be in focus. Meanwhile, markets would continue to mirror global indices. We suggest maintaining “buy on dips” approach and keeping extra caution in selection of stocks.”
Vinod Nair, Head of Research at Geojit Financial services
“Firm global cues and a clear majority to favorite democrats party in the US election took main benchmark indices to all time high. The rally in the domestic market was also led by banking and finance stocks on improved business outlook post Q2 results and bounce back of economic activities. Broader market has shown under-performance compared to headline peers as investors feel safer chasing heavyweights during high market levels. We expect more stimulus measures are required to boost the economy and announcements regarding the same from the government is expected in the near future that can further accelerate our domestic market”.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
“The Nifty extended its buoyant movement and closed at the day high which reinstates the bullish tone of the markets. If this momentum continues, we should be achieving 12650-12700 during the course of the November series itself.”
