Markets Daily - Dec 28, 2020 - Mr. Deepak Jasani, Head of Retail Research, HDFC Securities

Indian equity benchmark indices closed at yet another record high on the first day of the final week of the year. Indices rose for the fourth consecutive day. Nifty opened gap up and inched up gradually through the day to close almost at the intra day high. At close the Nifty was up 123.90 points or 0.90% at 13,873.20.

Volumes on the NSE were much below the recent average reflecting absence of some institutional players due to year end/Christmas considerations. Among sectors, PSU Bank, Metals, Realty, Bank, Auto and Media were the main gainers while Pharma index ended marginally in the red. Midcap and smallcap indices outperformed the Nifty as absence of institutional players gave traders a free hand to ramp up mid and smallcap stocks.

Asian stock markets rose Monday after President Trump signed a $900 billion economic aid package backing down from his earlier threat to block the bipartisan bill, in turn helping to reduce uncertainty as governments re-impose travel and business curbs in response to a new coronavirus variant.

European markets rose at the start of the last trading week of 2020, as traders reacted to Brexit developments and President Donald Trump signing a $900 billion Covid-19 relief bill into law.

Nifty has closed up for the fourth consecutive day. It has risen with a second upgap in the past four sessions showing the enthusiasm among traders and investors to latch on to stocks. Liquidity rush boosted by low or zero interest rates abroad is boosting stock markets across the globe. Absence of negative triggers is resulting in the current upward momentum being continued. Nifty is now in close range of the psychological 14,000 number.

Source : Equity Bulls

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