Equities from Tokyo to London surged after reports said that Jenet Yellen, the Treasury Secretary-elect, will tell US Congress later today to “act big” in terms of fiscal measures to support the economy in an environment of ultra-lose monetary policy and record low interest rates.
The Nifty50 index ended 1.7 per cent, or 239.9 points, higher at 14,521.15 points, while Sensex closed at 49,398.29, up 1.7 per cent, or 834.02 points.
The broader market mimicked gains in their largecap peers with the Nifty Midcap 100 and Nifty Smallcap 100 ending 2.3 per cent and 1.7 per cent higher, respectively. All sectoral indices on the National Stock Exchange also ended in the green.
Here are the major movers in the market today:
HDFC sees relief rally
The country’s largest housing finance company saw its stock jump 3.5 per cent and contribute the most to Nifty50’s rise on the perception that the RBI may not recommend imposition of cash reserve ratio or statutory liquidity ratio for deposit or non-deposit taking NBFCs.
Bajaj twins surge too
Similar to HDFC, the country’s other two mega non-bank lenders Bajaj Finance and Bajaj Finserv also saw their stocks surge on news that the central bank is unlikely to bring strict capital control measures and may instead opt for higher supervision and capital buffers when it releases a discussion paper on NBFC regulations later this week.
CEAT jumps on strong Q3 numbers
Shares of the tyre maker ended 5.5 per cent higher after it reported a 150 per cent YoY rise in consolidated net profit for the December quarter to Rs 132.1 crore. The company’s consolidated revenues jumped 26 per cent to Rs 2,221 crore.
Metal stocks rally on stimulus hopes
Shares of metal companies rebounded sharply after Monday’s steep correction as investors were enthused by prospects of higher fiscal stimulus and the strong economic growth in China. Nifty Metal index rose nearly 3 per cent.
Nifty Bank closes in on record high
The banking index came within touching distance of reclaiming its lifetime high of 32,613.1 points as investors added positions in shares of ICICI Bank, SBI, HDFC Bank, and Kotak Mahindra Bank. The index closed 1.9 per cent higher at 32,424.85 points.
Who gave “buy” signal?
Shares of as many as 29 companies gave a buy signal based on MACD indicator. The list included prominent names like Bajaj Auto, Hindustan Zinc and ABB India.
What’s ahead for the market?
Positioning by traders in the options contracts of Nifty50 index showed that any gain in the market is likely to be limited to 14,800 points as they sold most Call options beyond that strike price in today’s session.
On the technical front, Nifty closed around its resistance area of 14,550-14,600. “If we manage to get past that level, we should be headed to 14,800-14,900. The index has made a strong base at 14,200 levels which acted as good support,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.