Budget 2020

Market Watch: More fuel left in banking stocks? | The Economic Times Markets Podcast

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Atul P. M and here are the top headlines at this hour.

RBI working group suggests permitting large NBFCs to convert into banks
RBI panel suggests raising cap on promoter stake in private banks
Sensex bounces back after 1-day hiatus, logs weekly rise
Pfizer seeking emergency use of its Covid-19 vaccine in US
Gland Pharma shares make a strong debut, jump nearly 22%

Let us take a quick glance at what happened on Dalal Street today.

Equity indices resumed their upward trajectory on Friday after a day’s pause as banking, finance and telecom counters saw robust demand amid mixed global cues. Unabated foreign fund inflows further supported the market.

After a choppy session, Sensex ended 282 points higher at 43,882 while Nifty gained 87 points to close at 12,859.

HDFC Bank, Kotak Mahindra Bank, Bajaj Finance, Bajaj Finserv, Bharti Airtel and ITC led the gains, while Reliance Industries, Axis Bank, HUL and Sun Pharma capped the upside.

Midcaps and smallcaps outperformed their largecap counterparts.

Sectorwise, BSE Telecom, Consumer Durables, Power, Finance, TECk and Utilities gained over 1 per cent each. With a fall of nearly 3 per cent, BSE Energy index stood as the lone loser.

Banking counters have been leading from the front this month. BSE Bankex has gained over 20 per cent on a month-to-date basis. Will the momentum sustain in the financial pack? We caught up with Vinod Nair, Head of Research, Geojit Financial Services, to try and seek answers to these and more questions.

Welcome to the show, Mr Nair

1) Can you highlight major factors which took the market higher?
2) Do you see more fuel left in banking stocks?
3) Should you buy Gland Pharma after the decent debut on bourses?

On the daily technical chart, Nifty50 formed a Hammer-like candle while on the weekly chart a Spinning Top occurred. Analysts noted that the index traded largely within a range during the week, even as Friday’s gains from the day’s lows were encouraging. They see a consolidation ahead.

We caught up with Nilesh Jain of Anand Rathi Shares and Securities to decode the charts.

1) How do you see the trade setup of Nifty after today’s rally?
2) What is your reading of F&O data?
3) How are the momentum indicators looking like for the next week?

Globally, other Asian markets ended mixed while European markets traded higher in early deals. US stock futures were mixed as rising Covid-19 cases raised the concerns that more restrictions would be unleashed across US cities and states.

That’s all for now, do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening, bye bye!