Mr. Aamar Deo Singh, Head Advisory, Angel Broking Ltd
Indian markets today closed on a positive note after Nifty and Sensex broke the 3-days losing streak. Nifty went up by 0.63% or 55.85 points and closed at 8879.10. Sensex, on the other hand, rose up by 0.56% or 167.19 points and closed at 30196.17. Bharti Airtel was the top Nifty gainer with 11% rise.
Top Gainers and Losers
Six sectors out of the 11 sectoral gauges ended at a higher mark with IT, Metal, FMCG, and Auto being the top gainers on Nifty showing a rise between 0.75 to 1.2 percent. Bharti Airtel was the top gainer with its stock rising by 11%, closing at the market price of Rs. 596.20. Other gainers included ITC that rose by 3.64% to close at Rs.170.75, Power Grid with a rise of 2.33% and closed at Rs.158.10, JSW Steel (3.83%), ONGC (5.69%), Adani Ports (9%), UltraTech Cement (4.15%), and NTPC (2.19%).
Nifty market losers for the day included Vedanta, Reliance Industries, Larsen & Toubro, Cipla, Axis Bank, HUL, SBI, and UPL. Sensex bellwether stock Reliance Industries, which opened on a positive note gave up its gains by the end of the session and ended 2.26 percent lower at Rs 1,408.15. The company begins its rights issue on Wednesday. HDFC Bank ended 0.59 per cent lower at Rs 831.50, while FMCG behemoth Hindustan Unilever closed 1.56 percent lower at Rs 1974.50.
Telecom Sector contributed to the rise
Due to COVID-19 the entire nation is in a state of lockdown. People are trapped in their homes and mobile devices and data plans are coming to their rescue. The increased spend on mobile tariffs and data plans has resulted in boosting the average revenue of the telecom sector, with the average revenue per user rising by 25%.
Lockdown Extension affecting market sentiments
Announcement for the lockdown extension to deal with the rising COVID-19 cases has worsened the market scenario. Investors are also disappointed with the economic package announced and are anticipating further deterioration. As a result, banks and NBFC witnessed a sharp fall. Nifty PSU Bank index was severely hit and showed a fall of 2.6%.
Potential COVID-19 Vaccine trials affected global markets
Global markets are seen responding positively to the vaccine trials in the US with NASDAQ showing a rise of 2.44% or 220.27 points, Nikkei 225 showing a rise of 1.49% or 299.72 points, Hang Seng rising 1.89% or 453.36 points. The positive trend in the global markets had a positive impact on the Indian market. Weaker dollar index further had a positive impact on the market performance. However, the rise can be a temporary phenomenon as the trials are still in the initial stage and the concerns regarding the virus can continue to have a negative impact on the Indian markets.
You might also like
More from Business
Blue Star Limited, India’s premier air conditioning and commercial refrigeration player has successfully completed the raising of Rs 350 crores …
LAUNCHES OPERATIONS IN THE UNITED STATES New Delhi, June 1, 2020: In a concerted move to accelerate its global …
By Aamar Deo Singh, Head Advisory, Angel Broking Ltd Indian markets today rose for the third consecutive day and ended on …