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Markets poised to kick off busy week on a high note!

Karan DSIJ
·3-min read

The bulls made a remarkable comeback last week on D-Street with Sensex surging 3.5 per cent and Nifty adding 3.3 per cent for the week. The most intriguing part was that the banking index, Bank Nifty, outperformed the bellwether indices and soared 6 per cent. The main reason for optimism on the D-Street was hopes of stimulus package announcements and encouraging macroeconomic data.

Today, the market and its participants would resume their normal chores after a long weekend. The early cues from SGX Nifty indicate that the Indian markets are likely to kick off the new week on a high note. Meanwhile, the global cues turned rosy after health reports of US President Donald Trump emerged, which shows that he is stable now and is likely to be discharged soon. SGX Nifty trades up by 88 points at 11,418.50 levels. Technically, the index has resistance placed in the zone of 11,470-11,550. Hence, traders, who had ventured for short-term trading, can book profit around these levels.   

This week is going to be an action-packed week as some major events are due. To begin with, the Supreme Court verdict on interest waiver, IT bellwether-TCS will flag earning seasons for Q2 and US Fed meeting minutes are some of the prominent events to watch out for the week.

Asian markets were seen advancing on Monday morning after the US President’s medical team said that President Donald Trump could be discharged today. Reacting to this, Hong Kong’s Hang Seng and Japan’s Nikkei 225 jumped 1.32 per cent and 1.28 per cent, respectively.  

On Thursday, Indian markets extended their northward journey for the second day with Sensex and Nifty recording gains of over 1.5 per cent. Nifty settled above the 11,400 mark and Sensex was just shy of the 38,700 mark. Positive global cues and India’s Manufacturing PMI surged to 56.8 in September from 52.0 in August, which became the two key catalysts for Thursday’s rally. The broader indices underperformed the benchmark indices but ended with decent gains. On the sectoral front, buying interest was witnessed across the board wherein, Nifty Private Bank and Nifty Bank became the top gainers.  

On Friday, the news of US President Donald Trump and first lady Melania, who tested positive for COVID-19, sparked volatility on Wall Street. Moreover, September employment added fuel to the fire as they were below estimates. However, a ray of hope emerged after the news broke out that a new fiscal relief package could be coming soon, which helped stocks to recover from lower levels. At the end of the day, the tech-heavy Nasdaq became the worst performer as it plunged over 2 per cent, while Dow and S&P 500 lost 0.5 per cent and 1 per cent, respectively. Meanwhile, European indices recovered from the lower levels to end the session on a mixed note.