Bulls likely to extend gains! All eyes on TCS & Pharma stocks today!
The dream run for the bulls continued on Tuesday as well. In fact, the indices marked its best closing after February 2020 with Nifty reclaiming the 11,600 mark and Sensex closing above the 39,500 mark. The early trends from SGX Nifty indicate that bulls are in no mood to halt their northward express as SGX Nifty is indicating Nifty to open up by 26 points at the 11,701 mark.
Today, all eyes would be on the IT major TCS, as the latter would flag off the earning season. It will also consider share buyback today. The stock is nearly up 9 per cent month to date and trading near its all-time high levels. Apart from this, the pharmaceuticals sector would also be in the limelight on Wednesday as reports indicate that the domestic pharma industry made a strong comeback in September month since it clocked 4.5 per cent growth in sales, led by cardiac and vitamins drugs.
Meanwhile, security in the F&O ban for today is VEDL and IDEA.
Asian markets were trading on a mixed note on Wednesday on the back of a negative lead from Wall Street in the overnight session. Japan’s Nikkei 225 was down by 0.17 per cent. On the other hand, Hong Kong’s Hang Seng rose 0.68 per cent and reclaimed its important psychological level of 24,000.
On Tuesday, Indian markets extended its upward journey for the fourth straight day, led by banking and financial stocks. The key benchmark indices opened the session with a gap up and traded in a lacklustre manner thereafter but during the last hour of the trade, frenzy buying helped the indices to end near the day’s high. At close, Sensex and Nifty advanced 1.54 per cent and 1.38 per cent, respectively. The broader markets underperformed for the second straight day in a row but both, Nifty Mid-cap and Small-cap added 0.63 per cent and 0.47 per cent, respectively. On the sectoral front, barring Nifty Metal, Nifty FMCG, and Nifty Pharma, all other indices ended in green wherein, Nifty Financial Services, Nifty Realty, and Nifty Private Bank were top gainers.
Tuesday turned out to be a terrible day for the US stocks as the latter went into a downward spiral in late-day trading after the US President Donald Trump announced that he has instructed administration negotiators to stop stimulus discussion with Democrats on any fiscal relief package till November 3 election. This sent a shiver down the spine of the market participants as they pushed the sell button. Further, Federal Reserve Chairman during his speech at National Association for Business Economics (NABE) remarked, “The pace of economic improvement has moderated since the outsize gains of May and June, as is evident in employment, income, and spending data. The increases in permanent job loss, as well as recent layoffs, are also notable.” He further added to the concerns about the future prospect of economic recovery. In the end, Nasdaq fell the most, followed by S&P 500 and Dow. Meanwhile, in the European region, the stocks ended in the green, aided by positive economic data.