Investors are looking beyond rising coronavirus cases and political unrest in the US to focus on hopes for an economic recovery later in the year.
“The global markets
were upbeat owing to the Democratic control of the US Senate and hopes of speedy economic rebound due to the vaccine, setting the trend for the domestic markets, which followed suit,” said Vinod Nair, head of research, Geojit Financial Services.
The first advance estimate of India’s gross domestic product (GDP), which projected a contraction of 7.7 per cent in financial year 2020-21, was better than expectation and this added to investors’ optimism. It showed good recovery in some sectors in the second half of the financial year.
On Friday, 481 stocks hit their 52-week highs, and 473 were locked in the upper circuit on the BSE Sensex. The market breadth was positive with total advancing stocks at 1,734 and those declining at 1,388 on the Sensex. Four-fifths of Sensex components ended the session with gains.
IT stocks gained ahead of third quarter results of Tata Consultancy Services. Tech Mahindra rose 5.6 per cent to become the fifth Indian IT company to cross a market capitalisation of Rs 1 trillion, while Infosys rose 3.95 per cent. Maruti was the best-performing Sensex stock, ending the session with a gain of 5.9 per cent.
“Besides earnings, global cues and updates on vaccine drive will also remain in focus. At present, the rotational buying across sectors helps the index inch higher and suggests aligning positions according to the trend. However, traders should avoid going overboard and keep a check on leveraged positions,” said Ajit Mishra, vice-president of research at Religare Broking. Barring two, all the BSE sectoral indices ended the session with gains.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.