Indian markets extended their rally to the fifth day on optimism that the easing of the nationwide lockdown will reboot economic growth, posting their longest winning streak since November The Sensex ended 522 points higher at 33,825, adding a combined 3,200 points in five days. The broader Nifty 50 index ended 1.5% higher at 9,979.
The gains come a day after Moody’s Investors Service downgraded India’s sovereign rating by a notch to the lowest investment grade. Addressing industry leaders, Prime Minister Narendra Modi today asserted that the country will definitely get back its economic growth and said reforms undertaken during the lockdown will help the economy in the long-run. He also pledged to undertake more structural reforms.
India’s rupee strengthened to ₹75.36 versus the US dollar.
Shares of Kotak Mahindra Bank Ltd ended 7.6% higher after a report on Monday said that promoter Uday Kotak will launch a ₹6,000 crore block deal to meet RBI regulations. Bajaj Finserve Ltd was the top gainer in Nifty 50 index, rising 9.5%.
Here is what market analysts said on today’s market action
Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities
“Today’s rally was based on domestic news flows especially, after Prime Minister Narendra Modi while addressing the annual session of CII gave confidence to corporates that completely changed the picture of the market. Bajaj twins, HDFC twins and a few other private banks closed higher. Technically, Nifty is at the resistance level and support exists within the range of 9800 and 9600 levels.”
Ajit Mishra, VP – Research, Religare Broking Ltd.
“The bulls continued to maintain their firm grip on the markets as the benchmark indices registered gains for fifth consecutive sessions led by positive global cues. It further gained momentum, encouraged by the PM’s speech at CII session that India’s economy would get back on track as the government is working towards systematic reforms which boosted investors’ sentiments.
The benchmark has gained over 9% in the last five sessions and trying to be in sync with global peers. We may see some consolidation or profit-taking ahead, citing critical hurdle around 10,050 zone. However, the buoyancy in banking would help the index maintaining a positive tone.”
Vinod Nair- Head of Research- Geojit Financial Services
“Indian markets shrugged off news regarding Moody’s credit rating downgrade, which was trumped by the expectation of the economy opening up. The government has again reiterated its commitment to continued reforms to strengthen the economy. The uptrend in most major sectoral indices continued while the broader markets have also participated. Inspite of many possible negative triggers, positive sentiment still drives the markets and would advise to stick to quality stocks.”
(With Agency Inputs)
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