In the last 13 sessions, bluechip indices have closed in the red for just one session, which outlines the one-way rally the market has seen. Infosys and TCS twins were the biggest positive contributors during the first hours of the day.
Factors driving markets
- Another stimulus from North Block: Finance Minister Nirmala Sitharaman said on Monday she has not closed the option to come up with another economic stimulus package, rekindling hopes that one may be in the offing.
- Caution over US aid: US House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin “continued to narrow their differences” about a fresh aid package, Pelosi’s spokesman, Drew Hammill, wrote on Twitter. Pelosi hopes that by the end of Tuesday there will be “clarity” on whether a coronavirus stimulus bill can be passed before the Nov. 3 elections, Hammill wrote.
- No hopes of EU-UK talks soon: Britain sees no basis to resume trade talks with the European Union unless there is a fundamental change in approach from Brussels, chief negotiator David Frost said, dashing earlier optimism that negotiations could resume.
- Still time for full recovery: The US economy is rebounding strongly after taking a big hit because of the pandemic, but it may be another year before the economy returns to pre-crisis levels and take even longer for the labor market to recoup lost ground, Federal Reserve Vice Chair Richard Clarida said on Monday.
- ECB to be ‘accommodative’: The European Central Bank will maintain an accommodative policy in response to the ongoing coronavirus crisis, ECB President Christine Lagarde said.
How are bluechips doing
After opening with minor cuts, benchmark indices recovered and rose above the flatline. At 9.29 am, BSE flagship Sensex was up 154.64 points or 0.38 per cent to 40,586.24. NSE benchmark Nifty followed, rising 46 points or 0.42 per cent to 11,905.
“Nifty needs to get past 12,030-12,050 which was around the same area from where the markets turned earlier this month. Until then the movements are expected to be tepid. If we can get past 12,050, we should target 12,200 as the next pit stop for the Nifty. We have a good support at 11,650,” Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
In the 50-share pack Nifty, HCL Tech was the biggest gainer, up 2.42 per cent. Shree Cements, Tech Mahindra, Eicher Motors, TCS, Wipro, L&T, Bharti Airtel and Ultratech Cements were among other major gainers.
Britannia, which reported its Q2 earnings on Monday, was the top loser in the pack, down 4.40 per cent. ONGC, IndusInd Bank, SBI, IndianOil, Hindalco, ICICI Bank and Nestle India were among other major names that opened with cuts.
Broader market indices underperformed their headline peers as Nifty Smallcap slipped 0.07 per cent while Nifty Midcap dipped 0.14 per cent. Broadest index on NSE, Nifty 500 was down 0.11 per cent.
Oberoi Realty, Aditya Birla Fashion Retail, Dalmia Bharat, Mishra Dhatu Nigam, Trident and Heidelberg were among major gainers from the space while Rallis India, Amber Enterprises, PVR, Future Retail, City Union Bank and Prestige Estate Projects were under selling pressure.
MSCI’s broadest index of Asia-Pacific shares outside Japan was 0.11 per cent lower after U.S. stocks ended the previous session in the red. Australian and Japanese also dipped and MSCI’s gauge of stocks across the globe was 0.09 per cent lower. Japan’s Nikkei slipped 0.34 per cent. Hong Kong’s Hang Seng index bucked the trend to rise 0.16 per cent.
The Dow Jones Industrial Average fell 1.44 per cent, the S&P 500 was 1.63 per cent lower and the Nasdaq Composite settled down 1.65 per cent. European shares closed lower as surging COVID-19 cases raised investor concerns
What to expect
- Q2 earnings: Bombay Dyeing, HUL, Granules India, Hindustan Zinc, IEX and Kajaria Ceramics are among those that will come out with their earnings during the day.