Indian market closed higher, Banking & Finance stocks gained the most

 

Factors that influenced the Indian Stock Market to close higher today: The Indian stock market opened gap up today after following global cues. The market later extended its early gains and closed in a strong note today. Almost all sectors participated in today’s rally that came after two days of flat closing. At the close, there were 36 stocks in advance and 14 were in the decline in the Nifty50 index.

The market sentiment got a boost with the Reserve Bank of India’s (RBI) statement that India’s current account balance (CAB) recorded a surplus of $19.8 billion i.e 3.9% of GDP in June end quarter of FY21. The surplus got increased from $0.6 billion in the preceding quarter (Q4FY20) on the back of the lower trade deficit.

The market sentiment got further boosted with the news that IHS Markit India Manufacturing PMI data has surged to 56.8 in September 2020 from 52.0 in August. This is the highest since January 2012. However, traders have ignored the 8.5% contraction of core sectors output data released yesterday.

The Unlock 5.0 was announced yesterday, Cinemas, Theater, Clubs, multiplex are allowed to open with 50% capacity. Traders ignored the news of increasing coronavirus cases in India and cheered the news of India Unlock 5.0 news. The encouraging auto sales number also helped the market closed higher today.

On the global front, major Asian markets are closed today for holiday. The Tokyo Stock Exchange in Japan has suspended trading due to technical issues. European markets are also trading higher as PMI Manufacturing data reported better than expected. US futures markets Dow and Nasdaq futures are also trading positive notes.

 

Indian Market indices that closed higher today

 

At close, Nifty gained 169.40 points or 1.51%, and at 11416.95 while Sensex closed higher by 629.12 points or 1.66% and at 38697.05 levels. The Bank Nifty on spot levels jumped 794.20 points or 3.71% and ended at 22246 levels.

The Nifty midcap and smallcap 100 indices also closed in green today. The midcap index gained 141.95 points or 0.84% and closed at 17125 levels. The smallcap index closed higher by 38.20 points or 0.66% and ended at 5861.15 levels.

The top five gainers in the Nifty index for the day are IndusInd Bank, Bajaj Finance, Axis Bank, ICICI Bank, and Tech Mahindra. The losers in the Nifty index for the day are Dr. Reddy, Hindalco, ITC, Reliance, and NTPC. IndusInd Bank, Reliance, and Bajaj Finance were the most active stocks in the NSE today.

On a sectoral basis, Banking & Finance, Insurance, Infrastructures, Automobiles, and IT & software sectors were major gainers. The sectors like Oil& Gas, Consumer Durables, capital goods closed marginally lower today.

 

Derivative markets today

 

The  Nifty futures price opened at 11356.70, and it made a positive opening of 99.85 points today. It has touched an intraday high at 11447 and a day’s low at 11344.35

The Nifty futures price has given a movement of 102.65 points. In the end, it gained 183.35 points or 1.63% and closed at 11440.20 levels.

The Bank Nifty futures price opened at 21676 It was made a gap up opening of 211.75 points. It has touched an intraday high at 22367.25 and a day’s low at 21665

During the day, the Bank Nifty futures price has given a movement of 702.25 points. In the end, it gained by 827.75 points or 3.86% and closed at 22292 levels.

 

Conclusions

Indian markets closed higher today after two days of the flattish close. The domestic market sentiments got boosted with various factors like global cues, unlock 5.0, PMI data, and encouraging the auto sales number. The Nifty has given a breakout and we may see further up move in the coming days.

Tomorrow the market will be closed on the occasion of Gandhi Jayanti. The Indian markets will now open on Monday after a long weekend.

Do visit our website for Weekly market reports, Key factors to move market next week, etc during the weekend.

 

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Happy weekend!!

Editor’s Desk