Markets post big weekly gains

After a day’s hiatus, the equity markets were back on their winning ways on Friday, with the Sensex rising by 127 points (0.31%) to close at 40,685.5 while the Nifty was higher by 33.9 points (0.28%) to close at 11,930.35. The declining number of Covid-19 cases domestically cheered the markets along with the positive global cues. On a weekly basis, the Sensex rallied 702.52 points or 1.75%, while the Nifty advanced 167.90 points or 1.42%. The Nifty Midcap outperformed the benchmarks by rising 3%.

According to market experts, the rally in the markets was a result of falling Covid-19 cases, anticipation of a positive festive season and better-than-expected quarterly earnings reported by major companies.

Sanjeev Zarbade, vice president – private client group research, Kotak Securities, said: “Market mood was cheerful on a sharp decline in daily Covid-19 cases, expectations of a decent festive season and decent Q2 earnings print for major companies. We advise investors to remain selective in buying stocks. Key events are stimulus discussions in the US, elections in the US and Covid-19 spread in Europe.”

Equities in Asia saw a range bound trading session on Friday, with the bourses in Japan, South Korea and Hong Kong up between 0.1% and 0.54%.

Morgan Stanley in a report said if more fiscal stimulus arrives in the US, it will impart upside risks to the growth and inflation outlook and consequently lead to a further and more rapid widening in the current account deficit.

Foreign portfolio investors on Friday bought stocks worth $151.11 million and domestic institutional investors sold equities worth $272.9 million.

The stock markets saw thin volumes on Friday with the futures and options segment seeing a turnover worth Rs 11.64 lakh crore and the cash market witnessing a turnover worth Rs 49,516.27 crore. This was against the six-month average of Rs 16.78 lakh crore and Rs 56,614 crore, respectively.