Stock markets surge on Monday after witnessing consolidation in four sessions- These 5 triggers driving action today
Almost after four sessions of declining streak, the Indian markets on Monday is trading higher with both the benchmark indices gaining around 1 per cent.
Almost after four sessions of declining streak, the Indian markets on Monday is trading higher with both the benchmark indices gaining around 1 per cent. The BSE Sensex was up over 600 points to 59389 levels, while Nifty50 reclaimed 17700-mark after soaring by over 170 points intraday.
The surge in the market has been on the basis of multiple triggers. From positive global cues, Reserve Bank of India’s Monetary Policy Committee's meet to the quarterly earnings session of Tata Consultancy Services, which will be the first to release its result this week.
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Besides, the rally in the pharma stocks is aiding markets the most with Divis Lab surging most in the trade being both Nifty Pharma and Nifty50 index by around 7.5 per cent intraday today.
Positive global cues
The global markets, especially the US markets on Friday closed positive with Dow Jones ending near 500 points higher up 1.5 per cent, while Nasdaq gained around 1 per cent.
Similarly, Asian shares tumbled on Monday on the back of about China's realty major Evergrande crisis, Japans Nikkei leading the fall, down over 1 per cent at one-month low intraday on Monday.
RBI MPC meet
The RBI Governor headed six-member Monetary Policy Committee (MPC) is scheduled to meet for three days from October 6. The decision taken at the meeting would be announced by Governor Shaktikanta Das on October 8.
It is expected that the central bank is likely to maintain status quo on interest rates for the eighth straight bi-monthly policy, amid rising global commodity prices and to curb inflation.
The RBI had last cut repo rate by 40 basis points in May 2020 to 4 percent to spur demand in the COVID-hit economy. Since then, the RBI has refrained from taking any action on interest rates.
Earning Season
With Tata Consultancy Services (TCS) becomes the first index heavyweight and IT major to release its September-end quarter results later in this week on Friday. The company last week through filing had announced that “it is scheduled on 08/10/2021 ,inter alia, to consider and approve audited standalone financial results for the quarter and six months ending September 30, 2021.”
Moreover, the company will also “consider declaration of a second interim dividend to the equity shareholders.”
Pharma stocks gain
Leading the surge in the Indian markets on Monday, the Nifty Pharma index extended gains to a fifth session and hit a record high, up around 2 per cent on the NSE. The surge is from Divis Lab shares that jumped over 10 per cent, followed by Aurobindo Pharma and Cadila Healthcare.
While in the mid and small-cap category, pharma companies such as Abbot India up over 4 per cent, Gland Pharma up over 3.5 per cent, while Star Pharma as well as Torrent Pharma up over 2 per cent are aiding the surge in the broader markets.
Of 20 pack of pharma index, 17 are advancing, while 3 stocks are declining in the trade during today’s session.
Overall market outlook
Both the benchmark indices registered worst weekly performance in the several months last week, it witnessed consolidation after scaling record highs in September on the back of declining COVID-19 cases and easing restrictions across the country.
Similarly, energy stocks Energy stocks advanced around on per cent 0.96%, led by NTPC up 2.5 per cent after the company expects to raise $2 billion via initial public offerings in three units.
Among other stocks, Grasim Industries fell as much as almost 3 per cent after income tax authorities raised a demand of $1.12 billion.
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01:01 PM IST