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Equity market starts FY22 on a high despite volatility

Equity market starts FY22 on a high despite volatility

Mumbai, April 1 (SocialNews.XYZ) The Indian stock market started the financial year 2021-22 on a high, tracking gains in the global markets.

Devarsh Vakil, Deputy Head of Retail Research at HDFC Securities, said: "Markets flagged off the new financial year in style, with gains of more than a percent in benchmark indices. An ambitious package announced by (the Joe) Biden Administration last night, to rebuild America's infrastructure enthused investors."

 

He noted that a surge in the metal stocks supported the indices.

"Barring FMCG, all other sectoral indices ended the day in the green. The short-term trend of Nifty regained its strength after one day of weakness. Repeated testing of key overhead resistance could open a possibility of a sharp upside breakout from the hurdle at 14,900 levels by next week. The majority of markets around the globe are closed tomorrow on 'Good Friday'," Vakil said.

Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services Ltd, said that global cues were positive, led by US President Joe Biden's announcement of a multi-trillion-dollar infrastructure investment plan.

Domestically, he noted that the Nifty erased most of the previous day's losses and ended the final day of the truncated week on a strong note, led by metals and PSU banks.

"Positive global cues and record GST collection for the month of March boosted the market sentiments. Rising global prices and increased domestic as well as global demand boosted metal stocks," Khemka said.

He was of the view that going ahead, Indian markets are likely to track global cues after the recent announcement of infra investment plan by the US President. Further, investors would now focus on upcoming quarterly results which would kick start from mid-April.

However, concerns over the fast-spreading second wave of Covid in India continues to remain and the fear of possible lockdowns prevail. Overall markets are likely to remain in a consolidative mode for some time awaiting for fresh positive triggers, he said.

On Thursday, the BSE Sensex closed at 50,029.83, higher by 520.68 points or 1.05 per cent from its previous close of 49,509.15.

The Nifty50 closed at 14,867.35, higher by 176.65 or 1.2 per cent from its previous close.

Source: IANS

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Equity market starts FY22 on a high despite volatility

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