- by Sanjana Rajpal
- 07th Aug 2020
Commentary by RBI helps bulls to push Sensex higher
On Thursday, 6 August 2020, the bulls managed to have control on a lively day of trading to push the benchmark indices above crucial resistance levels, with the S&P BSE Sensex reclaiming the 38,000-mark and the Nifty50 climbing to 11,200.
After the volatile day and various ups and downs, the Sensex ended the day 362 points higher at 38,025 while the Nifty50 rose 98 points to close at 11,200.
The Strong global suggestions and the Reserve Bank of India (RBI) commentary measures to support the stressed sector helped in making the Sensex rise. Though the rates are kept unchanged by central banks, experts say a 25-50 bps cut is still possible by March 2021.
The Nifty50 has been gaining momentum for the past three trading sessions but experts say that a further rally is possible only if the index ends above 11,250-11,256 on a closing basis.
Though it closed in the green, the Nifty50 remained volatile and somewhat indecisive as it signed off the session with a Doji candle.
Sector-wise performance
If you talk about the sector-wise performance, a mixed trend was visible while decent gains were visible in the broader market front.
The top sectors which were benefited in today’s market stand to be IT, FMCG, consumer durables, and metal index, while in sectors like telecom, capital goods, and power stocks, the profit-taking was visible.
On the broader markets front, the S&P BSE Midcap index rose 0.7 percent, while the S&P BSE Smallcap index closed with gains of 1 percent.
Top Nifty gainers included UPL, HCL Technologies, Bajaj Finance, and Infosys.
Top Nifty losers included M&M, Adani Ports, Bajaj Finance, and Infosys.
Stocks of the day
●If talking about the stock sector-wise, the S&P BSE IT index rose 2.2 percent followed by the S&P BSE FMCG index that was up 1.3 percent and the S&P BSE Consumer Durable index gained 1.2 percent.
●Mild profit-booking was seen in stocks like telecom (down 0.3 percent) followed by capital goods (down 0.29 percent) and power index (down 0.09 percent).
●GAIL India, Canara Bank, NIIT Tech, and Muthoot Finance showed a volume spike of more than 100 percent. The stocks like Federal Bank, M&M Finance, and NIIT Tech showed Long buildup.
●The stocks like Canara Bank, Muthoot Finance, and Bata India showed the short buildup.
●More than 100 stocks on the BSE including Wabco, Info Edge, and Torrent Pharma hit a fresh 52-week high.
Commodity market
Gold price in India continued its upside trend and traded near record highs on Thursday, tracking positive global cues from the international commodity market, as surging coronavirus cases cast a shadow on global economic recovery. Weakness in the dollar also drove investors to the safe-haven asset.
