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NEW DELHI: Banking names continued to be in demand but profit booking in IT and telecom kept the gains in check on Tuesday as investors were enthused by Pfizer’s vaccine success.
The vaccine news sparked rally in equities around the world boosting sentiments. However, volatility indicator India VIX that has been softening for a while spiked during the initial trade.
Factors driving markets
Vaccine hopes: Pfizer said its Covid-19 vaccine, developed with German partner BioNTech SE, was more than 90 per cent effective in preventing infection, marking the first successful results from a large-scale clinical trial. Meanwhile, Brazil's health regulator said on Monday it had suspended clinical trials for China's Sinovac coronavirus vaccine after adverse effects had emerged.
Fed support to continue?: Dallas Federal Reserve Bank President Robert Kaplan said the US economy is rebounding from a deep contraction, but the resurgence of Covid-19 poses downside risks. Cleveland Federal Reserve Bank President Loretta Mester said the emergency lending programs the Fed set up during the coronavirus pandemic are still needed.
US elections: While stocks have also rallied on the assumption that Democrat Joe Biden would be the next US President, the top Republican in US Congress did not acknowledge Biden as president-elect, raising concerns about a rough transition of power. Donald Trump's campaign also filed a lawsuit in a Pennsylvania federal court, seeking to block state officials from certifying President-elect Joe Biden's victory in the state.
How are bluechips doing
After opening with gains, benchmark indices strengthened their lead. At 11.00 am, BSE flagship Sensex was up 520.68 points to 43,118.11. NSE benchmark Nifty followed and rose 124 points to 12,505.25. Both indices scaled fresh record highs.
In the 50-share pack Nifty, ICICI Bank was the biggest gainer, up 3.70 per cent. Bajaj Finance, IndusInd Bank, SBI, HDFC, Larsen & Toubro, GAIL and Tata Motors were among other gainers.
Tech Mahindra was the top loser in the pack, down 4.02 per cent. Infosys, HCL Technologies, TCS, Wipro, Cipla, Nestle India, Divi’s Laboratories, Maruti Suzuki and Bharti Airtel were other major losers in the pack
Broader markets
Broader market indices underperformed benchmark. Nifty Smallcap rose 0.12 per cent while Nifty Midcap dipped 0.17 per cent. Broadest index on NSE, Nifty 500 was up 0.21 per cent.
Indian Hotels, YES Bank, AU SFB, PVR, Lemon Tree Hotels and Delta Corps were among major gainers from the space while Sun Pharma Advanced Research, JB Chemicals, Indiamart, Dr Lal Pathlabs, Ipca Labs and Jubilant Foodworks were under selling pressure.
Global markets
Japan's Nikkei 225 rose 1.1 per cent after reaching a 29-year high in early trade and Australia's S&P/ASX 200 rose 1.6 per cent.
Hong Kong's Hang Seng index futures was up 1 per cent in early trade but there was marginal weakness in China as the CSI300 Index slipped by 0.24 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.12 per cent higher.
On Wall Street, the Dow Jones Industrial Average rose 2.95 per cent, the S&P 500 gained 1.17 per cent while the Nasdaq Composite dropped 1.53 per cent. E-mini futures for the S&P 500 rose 0.47 per cent.
What to expect
The vaccine news sparked rally in equities around the world boosting sentiments. However, volatility indicator India VIX that has been softening for a while spiked during the initial trade.
Factors driving markets
Vaccine hopes: Pfizer said its Covid-19 vaccine, developed with German partner BioNTech SE, was more than 90 per cent effective in preventing infection, marking the first successful results from a large-scale clinical trial. Meanwhile, Brazil's health regulator said on Monday it had suspended clinical trials for China's Sinovac coronavirus vaccine after adverse effects had emerged.
Fed support to continue?: Dallas Federal Reserve Bank President Robert Kaplan said the US economy is rebounding from a deep contraction, but the resurgence of Covid-19 poses downside risks. Cleveland Federal Reserve Bank President Loretta Mester said the emergency lending programs the Fed set up during the coronavirus pandemic are still needed.
US elections: While stocks have also rallied on the assumption that Democrat Joe Biden would be the next US President, the top Republican in US Congress did not acknowledge Biden as president-elect, raising concerns about a rough transition of power. Donald Trump's campaign also filed a lawsuit in a Pennsylvania federal court, seeking to block state officials from certifying President-elect Joe Biden's victory in the state.
How are bluechips doing
After opening with gains, benchmark indices strengthened their lead. At 11.00 am, BSE flagship Sensex was up 520.68 points to 43,118.11. NSE benchmark Nifty followed and rose 124 points to 12,505.25. Both indices scaled fresh record highs.
In the 50-share pack Nifty, ICICI Bank was the biggest gainer, up 3.70 per cent. Bajaj Finance, IndusInd Bank, SBI, HDFC, Larsen & Toubro, GAIL and Tata Motors were among other gainers.
Tech Mahindra was the top loser in the pack, down 4.02 per cent. Infosys, HCL Technologies, TCS, Wipro, Cipla, Nestle India, Divi’s Laboratories, Maruti Suzuki and Bharti Airtel were other major losers in the pack
Broader markets
Broader market indices underperformed benchmark. Nifty Smallcap rose 0.12 per cent while Nifty Midcap dipped 0.17 per cent. Broadest index on NSE, Nifty 500 was up 0.21 per cent.
Indian Hotels, YES Bank, AU SFB, PVR, Lemon Tree Hotels and Delta Corps were among major gainers from the space while Sun Pharma Advanced Research, JB Chemicals, Indiamart, Dr Lal Pathlabs, Ipca Labs and Jubilant Foodworks were under selling pressure.
Global markets
Japan's Nikkei 225 rose 1.1 per cent after reaching a 29-year high in early trade and Australia's S&P/ASX 200 rose 1.6 per cent.
Hong Kong's Hang Seng index futures was up 1 per cent in early trade but there was marginal weakness in China as the CSI300 Index slipped by 0.24 per cent. MSCI's broadest index of Asia-Pacific shares outside Japan was 0.12 per cent higher.
On Wall Street, the Dow Jones Industrial Average rose 2.95 per cent, the S&P 500 gained 1.17 per cent while the Nasdaq Composite dropped 1.53 per cent. E-mini futures for the S&P 500 rose 0.47 per cent.
What to expect
- IPO watch: Investors will keep an eye on the response to the issue of Gland Pharma that is also facing backlash due to Chinese connection.
- Bihar elections: Investors will also keep a watch on the outcome of the Bihar election that is likely to have an impact on sentiments.
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