Banking, pharma stocks lift indices, metals shine too

MUMBAI: A bounce back in banking stocks lifted the key Indian benchmark equity indices on Thursday. Accordingly, the two indices regained their momentum during half an hour of the trade session, on the monthly derivative expiry day. Globally, Asian stocks ended largely up while European stocks traded around the flatline as investors paused after a global rally in recent sessions. However, an extension of coronavirus restrictions in Germany and grim economic growth forecast for the United Kingdom dented sentiments.

Back home, volumes on the NSE were below the previous two days' levels. Among indices, metal stocks were the star performers followed by banking and pharma scrip. Consequently, the NSE Nifty50 on the National Stock Exchange (NSE) gained 128.60 points, or 1 per cent, to close at 12,987 points.

Similarly, the S&P BSE Sensex ended at 44,259.74 points — higher by 431.64 points, or 0.98 per cent — from its previous closing.

"Nifty once again recovered after falling for a day," said Deepak Jasani, Head of Retail Research at HDFC Securities. "This helps traders' sentiments. The 12,833-13,079 could be the band for the coming session. Markets are in no mood to correct significantly unless there is a negative trigger causing global meltdown."

According to Vinod Nair, Head of Research at Geojit Financial Services: "Investors are awaiting the release of Q2 GDP data tomorrow, the market expects contraction on a Y-o-Y basis but improvement on a Q-o-Q basis, reflecting recovery in economic activity." "The recovery is expected to further rise in Q3, and the market optimism is also high with the news that a vaccine will be available in early 2021." (IANS)

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