Hopes of healthy Q2 results lift markets; oil stocks rise

Mumbai, Oct 5 (IANS) India’s key equity indices rose during Tuesday’s trade session on the back of positive economic data and hopes of healthy Q2 results.
However, the two key indices languished for the better part of the day’s trade after having a gap down opening.
Globally, a sell-off in technology stocks deepened in Asia on Tuesday amid investor fears of higher interest rates along with surging commodity prices which fuelled concerns about global inflation.
On the domestic front, IHS Markit India Services Purchasing Managers’ Index (PMI) survey report said that services sector activity continued to remain strong in September despite a small fall from August.
The data showed services PMI stood at 55.2 in September, down from 56.7 in August.
Sector wise, Oil & Gas, Telecom and Power indices rose the most, whereas Realty and Healthcare indices receded.
Consequently, the 30-scrip sensitive index closed at 59,744.88 points up 445.56 points or 0.75 per cent.
Similarly, the NSE Nifty50 ended the day’s trade at 17,822.30 points, up by 131.05 points or 0.74 per cent.
“Nifty closed at almost the intra day high with high volumes and positive advance decline ratio. Nifty shows good momentum,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
“The next resistance for the Nifty is 17,912-17,948 while the support is at 17,711.”
According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: “Indian equities opened with negative bias but regained its momentum in second half to edge higher as broad based buying was seen in market ahead of September quarter earnings.”
“Majority of global markets rebounded as investors side-lined their worries over rising oil and gas prices.”
In addition, Vinod Nair, Head of Research at Geojit Financial Services said: “After a week-long consolidation, the Indian market is back in action despite unfavorable global sentiments.”
“The momentum is driven by the expectation of better Q2 earnings backed by recovery in economic activity, second wave fallout not being severe and in anticipation of a better outlook from festival demand.”

- Advertisement -