Stock market finally ends its losing streak
2QFY20 earnings season would kick start from tomorrow with IndusInd Bank and TCS declaring their results. This earnings season will also likely be another tepid one. Thus instead of the quarter’s numbers, market would be tracking the commentaries of the corporates on underlying demand post the recent government measures.
The Indian indices on Wednesday finally ended its losing streak after bleeding for six straight trading sessions. The stock market experts are of the opinion that the rise is because of the dovish stance taken by China ahead of the US-China trade talks taking place from tomorrow. The BSE Sensex skyrocketed 645 points and closed at 38,177 levels while the 50-stock Nifty index shot up 186 points and closed at 11,313 levels in the closing bell session. The Bank Nifty index skyrocketed 1,018 points and closed at 28,785 levels.
Siddharth Khemka, Head - Retail Research, Motilal Oswal Financial Services said, “Market bounced back today after the steep fall of 4% in the last six trading sessions, partly due to the short covering. Nifty closed the day at 11313, up 1.7%, while Bank Nifty was up 3.6%. Cabinet today approved increase in Dearness Allowances by 5%, taking it up from 12% earlier to 17%, thus benefitting over 1 crore government employees and pensioners, which may boost consumption. Banking and NBFC stocks witnessed biggest gains followed by Metal, Auto, Cement and Pharma stocks. However, Tech stocks declined.
2QFY20 earnings season would kick start from tomorrow with IndusInd Bank and TCS declaring their results. This earnings season will also likely be another tepid one. Thus instead of the quarter’s numbers, market would be tracking the commentaries of the corporates on underlying demand post the recent government measures. On the positive side, the festive season demand has begun on a optimistic note. Globally, trade talks between US and China will be held over the next two days.
However, the market is less hopeful on US and China reaching a truce this week, since US introduced visa restrictions on Chinese officials and added more Chinese companies to a US trade blacklist. Further the tariffs on Chinese imports will rise on October 15 if no progress is made in the negotiations. Thus result season and US-china trade talks would drive the market going ahead.
Technically, Nifty formed a Big Bullish Candle on daily scale and negated the formation of lower top - lower bottom on lower time frame. Now it has to hold above 11250 zones to extend its move towards 11400-11450 zones while on the downside major support is seen at 11100 zones.”
Among the major Asian markets, the Japanese Nikkei 225 index shed 0.61 per cent, south Korean Kospi soared 1.21 per cent, Hang Seng went off 0.81 per cent while the Shanghai markets added 0.39 per cent.