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Sunday, October 25, 2020

Rebound in global markets, stimulus hopes push Sensex up by 593 points

The broader markets outperformed and ended with decent gains of 2.6-2.7 per cent.

Written by ENS Economic Bureau | Mumbai | Updated: September 29, 2020 5:54:37 am
senex, nifty, bse sensex, nse nifty, markets, markets today, business news, indian expressIn the previous session, Sensex ended 304.38 points or 0.77 per cent higher at 39,878.95, while Nifty jumped 76.45 points or 0.66 per cent to close at 11,738.85.

Stock markets on Monday made strong gains amid hopes of fresh stimulus measures and strong global cues. The benchmark Sensex soared 593 points to 37,981.63 and the NSE Nifty Index gained 177 points to 11,227.55 on all-round buying support.

The broader markets outperformed and ended with decent gains of 2.6-2.7 per cent. The rebound in global indices, combined with the hopes of possible stimulus, aided the market rally. Further, reports that unlocking 5.0 will bring relaxation in the tourism, education, hotels and leisure segments including cinema halls and improved demand as well as the investor sentiment.

Vinod Nair, Head of Research, Geojit Financial Services, said, “Benchmark indices gained strength throughout the day, helped by gains in banking and financial stocks. Global cues were also positive following positive industrial profits data from China, setting aside concerns about the increasing virus infections and related impact.” Indian markets were also banking on further stimulus and other measures by the government to boost the economy. “Traders limit overnight positions and keep booking profits while investors follow an accumulation strategy,” he said.

Markets started the week on a positive note, tracking supportive global cues. “In continuation of Friday’s rebound, the benchmark made a gap-up opening and gradually inched higher the day progress. The recovery was broad-based as a noticeable rebound was seen in auto, banking and financial stocks after investors’ hopes increased on the likely announcement of an additional stimulus package by the government,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

Asian stocks rose Monday, tracking a healthy lead from the US as bargain-buyers moved in following a recent sell-off and news that profits at China’s biggest industrial firms grew for a fourth straight month, indicating the world’s number two economy is getting back on track.

European stocks partially recovered from last week’s hefty losses on Monday, helped by bargain shopping by foreigners, upbeat industrial profits data from China and as banking stocks bounced off record lows.

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