Early Diwali on D-Street: Nifty to aim its all-time high at 12,430; Gland Pharma opens for subscription today
The Indian markets enjoyed a strong run last week with Nifty reclaiming the 12,200 mark and Sensex closing within the striking distance of the 42,000 mark. On Monday, the bull’s buying spree is showing no signs of abating as the early trends in SGX Nifty suggest that Nifty may open around its all-time high as it is trading up by 1.30 per cent at 12,424.50 levels. Certainly with the festive season i.e. Diwali being around the corner, the bulls are beaming with joy & celebrating with fireworks.
The IPO market is also likely to be in the limelight as one of the biggest IPOs by a pharmaceutical firm in India i.e. Gland Pharma opens for subscription today. Apart from this, the market participants would look forward to the outcome of Bihar election as an exit poll has already been released. This could prove to be one of the prominent factors that could dictate the trend of the markets in the near term.
Asian markets were in a jubilant mood on Monday after US election results, where Joe Biden emerged as the winner. Japan’s Nikkei 225 jumped 1.93 per cent, Hong Kong’s Hang Seng added 1.20 per cent and was trading above its landmark level of the 26,000 mark and China’s Shanghai Composite was up by 1.05 per cent.
The key benchmark indices continued to climb north on the final trading session of the week with Nifty and Sensex advancing 1.18 per cent and 1.34 per cent, respectively. Nifty settled above the 12,250 mark, while Sensex settled within the striking distance of the 42,000 mark. The broader market underperformed the frontline gauges but managed to log gains of 0.71 per cent and 0.59 per cent, respectively. On the other hand, India VIX declined further to 20.50. On the sectoral front, barring Nifty Pharma and Nifty FMCG, all other indices witnessed buying interest wherein, Nifty Private Bank and Nifty Bank were the top gainers.
On Wall Street, the bulls ran out of steam in the final trading session of the week as stocks ended the session on a mixed note. Uncertainty about the presidential outcome turned the traders anxious. Meanwhile, on the economic front, Nonfarm payrolls for the month of October came in above the estimates, which lent the much-needed support to the markets. Further, the unemployment rate fell to 6.9 per cent from September’s 7.9 per cent. In the end, the tech-laden Nasdaq added 4 points, while Dow ended down by 67 points and S&P 500 dipped 1 point. The European indices ended lower on Friday as traders preferred to take profits off the table after witnessing sharp rallies in the previous trading sessions.