Markets zoom on hopes of Covid vaccine in India; banking stocks rise

Markets zoom on hopes of Covid vaccine in India; banking stocks rise

Mumbai, Nov 24 (IANS) Optimism over the introduction of an Civod-19 vaccine in India along with continued foreign fund inflows boosted the Indian stock markets on Tuesday.

In terms of global cues, positive development over US President-elect Joe Biden’s team getting a formal go-ahead to begin the transition process boosted investor sentiments.

Back home, broad based buying took place on hopes that a Covid-19 vaccine will be available in India soon.

Besides, another key factor for the markets’ rise was attributed to the healthy FII inflows worth more than Rs 50,000 crore in November so far.

Accordingly, both the major benchmark indices the — S&P BSE Sensex and the NSE Nifty50 — continued their gaining streak for the third straight day to touch their respective intra-day highs and made new closing highs in the process.

Consequently, NSE Nifty50 touched an all-time high of 13,048.75 points on Tuesday, and the BSE Sensex hit a record high of 44,499.62 points.

The NSE Nifty50 closed at 13,055.15, up 128.70 points or 1 per cent from its previous close. Similarly, the BSE Sensex closed on a high note of 44,523.02 points, up 445.87 points or 1.01 per cent from its previous close.

Among the sectors, banks emerged as the biggest gainers followed by financials, auto, realty, metals and pharma.

“The overall market mood is already bouyant from the progress made on the Covid-19 vaccine front and the prospects for a speedy global economic revival. Going ahead, the market momentum is likely to continue given the optimism over vaccine progress,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

“Investors would closely watch the transition of Joe Biden as the US President and developments over stimulus announcement from the new government. On the domestic side, the market would look for cues from the monthly F&O expiry and the rollover data, especially on FII position. Moreover, the expected MSCI inflow of more than $4 billion on Friday would keep the momentum positive,” Khemka added.

According to Deepak Jasani, Head of Retail Research at HDFC Securities: “Asian shares were mostly higher and European stocks rose on Tuesday, buoyed by optimism that vaccines will end the coronavirus pandemic. Intra-day dips are being bought into. Advance decline ratio remains very positive. Stable and gradual move towards Nifty 13,200-13,250 continues on expected lines.”

The top gainers on the Sensex on Tuesday were Axis Bank, Mahindra & Mahindra and Maruti Suzuki India, while the major losers were Bharti Airtel, HDFC and ONGC.

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