Stocks rise on Wednesday on buying in IT cos & RIL, Q2 results

Stocks ended the day in the green for the third straight session on Wednesday despite the global volatility. The Sensex rallied 355 points (0.88%) to close at 40,616.14 while the Nifty gained 95 points (0.8%) to close at 11,908.5.

The stock markets have been moving in line with global cues for the last few trading sessions thanks to the uncertainty around the US Presidential election.

According to Siddhartha Khemka, head — retail research, Motilal Oswal Financial Services, given that the US is the world’s largest economy and the longest-standing democracy, the US elections hold significant importance in global geopolitical and economic situations.

Besides positive global cues, the domestic benchmarks gained also because of buying in the information technology stocks and Reliance Industries. The quarterly results of most bluechip Indian companies have positively surprised investors.

Jefferies in its report said, “The September 2020 quarter result season has seen a strong start. Upgrades to FY 2021 earnings outweigh downgrades 6:1 for the 53 companies under our coverage reporting results thus far. Consensus has also moved similarly. Notable upgrades seen in IT, cement and metals both for us and consensus. Asset quality trends are also better than the worst fears for banks. As Indian economy heads to normalcy and India avoids lockdowns, dips should be buying opportunities.”

Foreign portfolio investors on Tuesday bought stocks worth $197 million whereas domestic institutional investors sold stocks worth $1 million. The futures and options segment saw a turnover of Rs 24.97 lakh crore and the cash market saw a turnover worth Rs 56,931 crore. These were against the six-month average of Rs 19.2 lakh crore and Rs 52327.79 crore, respectively.