Indian shares ended higher continuously for the fourth day in a row, as Hdfc’s earning report created hope and helped offset the impact of a surge in domestic corona virus cases. A Combination of factors such as easing of lockdown restrictions in the country are propelling the markets. The NSE Nifty 50 index closed up 1.1% at 11022.2 crossing the 11000 mark after four months.
S&P BSE (Bombay stock Exchange) Index closed 400 points higher at 37418.99, led by Financial and IT stocks. Since when India’s Biggest private sector lender Hdfc Bank announced 20% rise in profits in its first quarter, the shares of the company stood up as 4.96%. Bajaj finance, a part of Bajaj Holdings and Investments Limited also rose to 4.2%.
Apart from Hdfc Bank, three major IT sectors Infosys, Wipro and Hcl Technologies also reported profits in their first quarter ending June 30th,2020. Infosys, Wipro and Hcl also rose to 4%. The NIFTY IT stock prices ended at 2.5% higher, and it was the top percentage gainer among the indexes.
Britannia Industries also reported higher profits for the quarter till June 30th,2020. The shares of Britannia advanced 5.34% and topped the gainers among nifty stocks. The Nifty Banking Index and the Nifty Financial Index gained about 1.6% on optimism from the lender’s results. Nifty remains in a short-term uptrend. Upsides are likely to happen once the immediate resistance of 11038 is taken out.
Various analysts and research experts have given their view towards the increase in Nifty. “The Nifty has continued its momentum and closed above the 11000 mark in spite of the covid-19 pandemic both in India and abroad. The earnings declared have been positive so far especially in the banking, and IT sector. Uptrend will continue, but it will be specific to certain stocks, and the investors seem to be looking commentary for further direction” says Vinod Nair, head of Research at Geojit Financial Services.
“The Data on NSE (National Stock Exchange) were average with IT sectors and Bank Stocks doing well, while the pharmaceutical company stocks underperformed “says Deepak Jasani, Head retail research, HDFC Securities.
The NIFTY crossing 10000 mark is a positive signal for the market participants. The long-term analysis of the stocks like the weekly and the monthly timeframes indicate a stretched upside momentum in the market and they signal a chance of sharp turnaround in Nifty from the higher levels.
