Sensex ends 477 points higher, Nifty at 11,385; realty stocks rally

Domestic benchmark indices ended largely bullish on Tuesday, amid heavy buying in realty and media scrips, despite mixed global equities. Sensex ended 477 points higher at 38,528 and Nifty added 138 points to close at 11,385. Yesterday, Sensex ended 173 points higher at 38,050 and Nifty gained 81 points to close at 11,385.

ONGC, followed by Reliance Industries, ICICI Bank, M&M, Infosys, Titan, Bajaj Finance and Bajaj Finserv were among the top gainers today. On the other hand, Tata Steel, PowerGrid, IndusInd Bank, Axis Bank and SBI were among the top laggards. Sectorally, except pharma, all the other indices closed in green territory, with the realty index registering 4% gains, followed by a 2% rise in media and banking stocks.

Traders said buying in index-heavyweights amid sustained foreign fund inflow and positive cues from global markets led benchmarks higher in today's session. Further, infrastructure spending by the government and hopes of more economic relief measures also boosted market sentiment.
April-June quarterly earnings announcements by Zee Entertainment Enterprises, Hindustan Aeronautics, JK Cement, Uflex, GTL Infrastructure, TCNS Clothing also kept the tone for the stock market bullish today.

Global markets

Asian markets were trading mixed with a slight negative bias as on Tuesday as investors continued to observe developments in the US-China tensions. The US President Donald Trump's administration announced on Monday, a further tightening of restrictions on Huawei, aimed at limiting the Chinese telecommunications giant's access to commercially available chips.

Wall Street stocks also closed mixed over lingering concerns over a US coronavirus stimulus bill to support American citizens and businesses. Both Democrats and Republicans have indicated they are at a stalemate over a new stimulus package.

US markets closed higher despite stalemate over fresh stimulus. European markets traded mixed as concerns over the spread of coronavirus continued.  Worldwide, there are 220 lakh confirmed cases and 7.77 lakh deaths from COVID-19 outbreak.

Meanwhile, India continues to see a rising number of coronavirus cases, with the death toll nearing 52,000 and total coronavirus standing at 27.01 lakh as of Tuesday.


Vinod Nair, Head of Research at Geojit Financial Services said, "Indian benchmark indices kept gaining strength during the course of the day, as opposed to mixed global market cues. US-China political tensions and the uncertainties over the US stimulus package kept global markets on edge. In India, investors took comfort in the expectation of government spending to offset the impact of the lockdown and the progress of the monsoon and its relation to the rural economy also improved sentiments."

Valuations

As per technical indicators, Nifty has finally crossed the earlier consolidation phase of 11300-11370 zone.

"We should now endeavour 11500-11700 as the next two levels for the market to achieve. A stop can be placed below 11200 as that is the new support for the index," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

Expressing views on near term Nifty outlook, Ruchit Jain (Senior Analyst - Technical and Derivatives, Angel Broking said, "The follow-up move in the coming session will be important as if the momentum continues, then it will lead the index towards 11465 followed by 11625. These are the projections done by the reciprocal retracements of the recent corrective move. On the flipside, 11250 will now be seen as important support. In the last few sessions, in spite of the consolidation in the index, the stock-specific moves have provided good trading opportunities."