Daily Markets - Nov 5, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices rose for the fourth straight session, spurred by positive global sentiments. At close, the Nifty 50 index ended 1.78% or 211.8 points higher at 12,120. The Nifty is 38 points away from turning positive for 2020. The Sensex turned positive for the year, surpassing the level of 41,253.

Volumes on the NSE were just above the recent averages. Among sectors, Metals, Media, Bank, PSU, FMCG, IT and Auto indices were the main gainers.

Investors across the globe appear happy that there may not be a "blue wave" outcome in the U.S. elections, as seen in the rally in world markets. If Republicans hold the Senate, they will want to stop what they see as the Joe Biden "spending agenda" and "runaway federal debt," which will mean less fiscal stimulus and no corporate tax increases. A divided US Govt is likely to be a favourable outcome for most asset classes.

The Bank of England meanwhile held interest rates at 0.1% and extended the size of its quantitative easing program by £150 billion as it forecasts the U.K. economy to contract in the fourth quarter.

Nifty crossing the recent high with an upgap and a very positive advance decline ratio mean that a fresh upthrust could have begun. Nifty could face resistance at 12246 and 12430 on the upside while 12018-12025 could provide support in the near term.

Source : Equity Bulls

Keywords