Nifty may take a pause, Sensex turns positive on a YTD basis; Reliance Industries to be in limelight!

Nifty has rallied nearly 600 points from the lows of October 30 and with this, it has reached its pre-COVID level while on a year-to-date basis, it is trading with a loss of less than half a per cent.

While Sensex has turned positive on a year-to-date basis after the stupendous run seen over the last week. However, after a strong run-up, the bulls might take a pause, and being the last trading session of the week, the traders also might want to go into a frenzy weekend mood without taking any major position.

SGX Nifty is indicating a soft start as it is down by 30 points and trading at 12,145 levels. The stock-specific move could continue on D-Street as over 200 corporates are scheduled to announce their earnings today. Further, the market participants will also keep a close eye on Reliance Industries as in overnight trade, Reliance Industries’ GDR was up by 5 per cent.

The majority of the Asian markets are seen taking a breather on Friday after the sharp rally that was witnessed in the last couple of days. Japan’s Nikkei surged 1.09 per cent and is trading at its 52-week high levels while Hong Kong’s Hang Seng and China’s Shanghai Composite were trading just below the neutral line.  

Indian markets continued its northward journey on Thursday as well. Sensex and Nifty both ended higher by 1.78 per cent and with this, the Sensex erased all its 2020 losses and turned positive on a year-to-date basis. Meanwhile, Nifty is down by nearly half a per cent on a year-to-date basis. The broader indices performance was in line with Nifty Mid-cap and Small-cap, which advanced 1.78 per cent and 1.72 per cent, respectively.

Stocks on Wall Street extended their gains for the fourth consecutive session on Thursday. CBOE VIX plunged nearly 7 per cent to 27.58 and the so-called fear index has been in a declining trajectory after surging to its four-month high last week. Subsidising volatility is indicating a fear of uncertainty that the big event of the US presidential election has passed.

Meanwhile, the Fed kept its stance and interest rate unchanged on expected lines and Dollar Index plunged lower, following the Fed decision. At close, all the three main US indices were up by 2 per cent with the tech-heavy Nasdaq led the way as it jumped 2.6 per cent while it’s now just 1.5 per cent away from its all-time high levels. While, in the European region, the stocks continued to surge higher as the market participants shrugged off worries about a swell in Coronavirus cases and implementation of tighter lockdown restrictions in some parts of the region.