Joe Biden gets green signal, transition as US President begins; no stopping for D-Street bulls now

Just like, ‘you’ve put on some weight’ is a standard remark after Diwali as people consume a lot of sweets during this festive season, ‘markets hit a new high’ is becoming another such standard remark bolstered by record-buying by the FIIs as the latter have pumped in more than 55,000 crore in equities till now in the month of November. And on Wednesday morning, SGX Nifty is indicating that there is no stopping the stock market bulls as it is up by 68 points at 13,151 levels. In the near term, we think Nifty has the potential to touch the levels of 13,200-13,220.

It’s a sea of green for Asian equities on Wednesday following strong cues from Wall Street overnight. Japan’s Nikkei 225 was up by 1.64 per cent at 26,595 and Hong Kong’s Hang Seng has risen 1.35 per cent and was trading within a striking distance of the 27,000 mark. China’s Shanghai index too added 0.18 per cent.

Tuesday turned out to be a terrific day for the Indian markets as the key benchmark indices hit a fresh all-time high and ended the day with gains of 1 per cent. Nifty and Sensex closed above 13,050 and 44,500 mark. The broader markets too ended in positive wherein Nifty Mid-cap and Small-cap advanced 0.73 per cent and 1.11 per cent, respectively. All the sectors witnessed buying interest with Nifty Bank, Nifty Private Bank, and Nifty Auto being the top gainers. 

In the overnight developments, US stocks registered another milestone as Dow breached the magical mark of 30,000 for the first time in history. The positive catalyst helping optimism on Wall Street were renewed COVID-19 vaccine hopes along with the clarity emerging on the political front as the formal transition of power to President-elect Joe Biden begins.

Meanwhile, on the economic front, Consumer Confidence declined more than anticipated. At close, Dow advanced 1.5 per cent, S&P 500 rose 1.6 per cent and Nasdaq increased 1.3 per cent. Stocks in the European region too ended in positive terrain on Tuesday on the back of further progress on the vaccine front.