Global cues push equity markets higher, auto, IT stocks rise


Mumbai, Jul 2 (IANS): Buoyant global cues along with initial signs of an economic turnaround pushed the key Indian equity indices higher on Thursday.

Market experts cited positive global economic data and encouraging coronavirus vaccine trials combined with onset of timely monsoon as factors that led to the higher trajectory.

Both the 30-scrip Sensitive Index (Sensex) of the S&P BSE and the NSE Nifty50 both made healthy gains.

Sector wise, all sub indices closed in the green with auto and IT making the biggest gains.

The Sensex, which had opened at 35,604 points, ended higher by 429 points or 1.2 per cent to close at 35,844 points.

On Wednesday, the Sensex had closed at 35,414.45 points.

Similarly, the broader 50-scrip Nifty at the National Stock Exchange (NSE) surged 122 points or 1.2 per cent to end at 10,552 points.

The broader market also appreciable gains.

Besides, India VIX cooled down 5.7 per cent to 26.5 levels.

"While there are concerns over rising coronavirus cases and chances of a second round of lockdown, market seems to be factoring in positive macro-economic data, onset of timely monsoon and initial success in vaccine development," said Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services.

"Investors would also keenly watch out for the US employment data, which will come out later today."

Deepak Jasani, Head of Retail Research at HDFC Securities,said: "Technically, with the Nifty moving up further after breaking out of the 10,194-10,410 range on Thursday, the underlying trend remains up."

"The Nifty could move up further once the highs of 10,597 are taken out."

In addition, Vinod Nair, Head of Research at Geojit Financial Services, said: "Indian benchmark indices have sustained their momentum while upsides seem to be limited. Investors are advised to watch out for any signs of trend reversal and keep booking short term profits."

On the currency front, the rupee rose sharply against the US dollar on back of expected dollar inflow of Reliance stake sale to Facebook.

"The quantum is expected to be around $5 billion and more dollar inflow could lead to further appreciation in the rupee. From the US, market participants will be keeping an eye on non-farm payrolls number and better-than-expected economic data could support the dollar that was weighed down in t he last couple of sessions," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.

"We expect the USDINR (Spot) could quote in the range of 74.40 and 75.05."

  

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