Indian stocks end higher with M&O expiration; financial, IT stocks lead to gains
MUMBAI: Indian stock markets closed slightly higher on Thursday amid the F&O expiration, with Nifty closing at a record high, as computer and financial stocks lead gains. A continued decline in covid cases in the country and better-than-expected results for the March quarter also boosted investor sentiment.
The benchmark Sensex stood at 51,115.22 points, up 0.19%, while Nifty finished up 0.45% to 15,337.25.
“National actions have been mostly resilient throughout the second wave of the pandemic, as the lack of a national lockdown, vaccine availability and continued industrial / manufacturing / infrastructure activities, although at a slow pace with a favorable supply chain, investors comforted. A sharp drop in daily workload in second The wave and improving collection rates have encouraged investors over the past week. In addition, strong 4TFY21 results and favorable comments from management also raised sentiment, ”said Binod Modi, head of strategy at Reliance Securities.
Going forward, the likely announcement of a phase-out of state-level lockdowns and a resumption of economic activity may help the market support the recovery, Modi added.
The relentless surge in domestic stocks and asset price inflation despite the economic contraction in the wake of the pandemic poses a risk of a bubble, the Reserve Bank of India (RBI) said in its 2020-2021 annual report, released Thursday.
“The market has gained momentum in opening hours over hopes of a state-level unlock due to declining cases of covid. However, RBI’s warning about the risk of a bubble in the stock market in its annual report has made the market cautious, forcing it to end flat on the day of the monthly F&O expiration. RBI has seen a disconnect between the market and the economy due to Covid. equity market is assessed based on its proposition of future earnings growth, which is strong for India today. High liquidity is helping the market and RBI has reaffirmed its supportive stance until the economy recovers. recover, ”said Vinod Nair, research manager at Geojit Financial Services.
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