Indian shares ended higher today amid a volatile session as investors watched the results of US election. The NSE Nifty 50 index closed up 0.8% at 11,908, reversing from a drop earlier in the session in volatile trading while S&P BSE Sensex 355 points ended higher at 40,616.
As the US election headed for a tight finish investors sought the safety of US dollar, helping buoy domestic IT shares. Gains in Reliance Industries and pharma stocks also provided support. The close race whipsawed global stock markets, while bonds and the dollar gained.
The Indian rupee weakened by 0.45% to 74.74, boosting shares of IT services firms that mostly earn their revenue in dollars but report it in rupees.
Oil-to-telecoms conglomerate Reliance, India’s most valuable company, recovered from two sessions of losses to close around 3.4% higher.
“Indian equity benchmark indices had a wild and volatile day today with alternate bouts of buying and selling. Volumes on the NSE were just above the recent average,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
Drugmaker Sun Pharmaceutical Industries ended nearly 4% higher after reporting upbeat quarterly profit, boosting the Nifty pharma index, which firmed 2.2%.
State Bank of India rose 1.1% after India’s biggest lender reported a rise in quarterly profit, helping the banking index reverse early losses and close 0.35% higher.
Here is what analysts said on today’s market performance:
Ruchit Jain, Senior Analyst – Technical and Derivatives, Angel Broking
“Now, trend continues to look positive as far as benchmark index is concerned, and the Midcap index too is interestingly poised as it is on a cusp of breakout from its resistance zone. A move above 17400 should led to the next leg of trended upmove in the midcap space and hence, traders are advised to keep a close watch on the same. Also, 12000-12025 has been a hurdle for Nifty recently and once we see a breakout beyond the same, the index too should see a good momentum for near term targets of 12160 followed by 12325. Thus, a simultaneous breakout in both Nifty and the Midcap index should lead to a good trended upmove in the broader markers, and thus traders should capitalize on such opportunity. On the flipside, 11800-11750 would now be seen as immediate supports for Nifty.”
Ajit Mishra, VP – Research, Religare Broking Ltd
“The prevailing volatility will continue in line with the global indices until we’ve a clear winner of the US presidential elections. However, the recent buoyancy in the banking pack on the domestic front is certainly encouraging but that might also take a breather after the recent surge. We thus reiterate our view to maintain cautious approach and prefer hedged trades.”
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
“We were unable to cross the 11950 levels. That continues to be the resistance point and if we get past that, we should expect the markets to go to 12200-12300 during the course of the November series. The support for the Nifty is at 11500. Until then, any dip can be used to accumulate long positions.”
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