Cheerful beginning on cards, indices may face resistance; TCS to remain in limelight
The bulls of D-Street are in a T-20 mode as every day, they are hitting the ball out of the park and not believing in taking singles. This was quite evident when the index gained almost 9 per cent from the lows of 10,790. On Thursday as well, they are showing no signs of abating as SGX Nifty indicates a positive start above the 11,800 mark.
Talking about the stocks, IT bellwether TCS would continue to be in the limelight as the stock reported its earnings post-market hours and Q2 earnings were ahead of the estimates. Moreover, the company announced a Rs 16,000 crore share buyback plan.
The security in the F&O ban for today is Adani Enterprises, BHEL, and IDEA.
The majority of the Asian indices were trading in the green on Thursday, following a strong close overnight on Wall Street. Japan’s Nikkei 225 has jumped 1.02 per cent, while Hong Kong’s Hang Seng is down by 0.66 per cent.
Indian markets extended their northward journey for the fifth straight day on Wednesday. Sensex and Nifty added 0.77 per cent and 0.66 per cent, respectively. However, the action in the broader indices was not striking as they continued their underperformance against the frontline gauges with Nifty Mid-cap and Small-cap losing 0.51 per cent and 0.33 per cent, respectively. Consequently, the advance-decline ratio was in the favour of decliners as 1,180 stocks declined and 723 stocks advanced. On the sectoral front, Nifty Auto and Nifty IT were the top gainers; while on the other hand, Nifty Media and Nifty Realty became the top losers.
The play of words has been the key catalyst driving the stocks on Wall Street up and down. As author Yehuda Berg believes, “Word is singularly the most powerful force available to humanity. We can choose to use this force constructively with words of encouragement, or destructively using words of despair.” Similarly, on Tuesday, President Donald Trump called off fiscal relief talks until after the election and this led to a huge sell-off on Wall Street but on Wednesday, he somewhat backtracked from his earlier statement and tweeted that he is ready to sign a standalone bill that would provide direct support to Americans, which led to a change of sentiment and reacting to this, the stock moved higher. Dow and Nasdaq rallied nearly 1.9 per cent each while S&P 500 gained 1.7 per cent. Besides, the European indices ended the session mostly lower.