By Aditya Raghunath
Investing.com — and the broke away from two consecutive days of losses to post gains of 1.27% and 1.17% respectively. Metal, FMCG, and auto stocks saw buying and rose 0.94% as well.
Tata Steel Ltd (NS:) led the winners list on Nifty with a gain of 5.89% followed by Bajaj Finserv Ltd (NS:) at 4.45%. Titan Company Ltd (NS:), Tata Motors Ltd (NS:) and Asian Paints Ltd. (NS:) all gained over 3.95% each. Most Tata Group shares were up on the Supreme Court judgment that junked Cyrus Mistry’s claims and ruled in favor of the Tatas.
Apart from the Tata ruling, two reasons for the gain in markets were:
- Good US GDP and unemployment numbers: US unemployment numbers were at a one-year low as economic activity started to rebound. The Commerce Department said that US GDP increased at a 4.3% annualized rate.
- Strong global cues: Asian stocks ended higher with ending up 1.56%, up 1.09%, and the up 1.63%. Europe has also opened higher with , and trading up 0.62%, 0.24% and 0.58% respectively at the time of this report. US futures are trading up as well and stock markets are set to open modestly higher later, but not by enough to leave them in the green for the week.
The Federal Reserve signaled that any risk to the stability of the banking system from the pandemic has peaked. It said on Thursday it will lift the restrictions on most banks’ dividends and stock buybacks that it imposed at the start of the pandemic.
After booking tens of billions of dollars in provisions against possible credit losses, banks posted a sharp rebound in profit in the third quarter before appearing to wobble again in the final quarter of 2020.