Indian markets rebounded today after a two-day selloff, with gains led by Reliance Industries. Shares of RIL were up over 2% at ?2026 today, extending Monday’s 2.4% advance. Sensex was up over 550 points while Nifty was firm near 14,450. The Nifty and Sensex hit record highs last week and saw investors book some profit after the record run. RIL will announce its earnings on Friday.
Earlier, on Monday, Mint, citing two officials aware of the development, reported that billionaire Mukesh Ambani’s Reliance Retail Ltd plans to embed its e-commerce app JioMart into WhatsApp within six months, allowing the 400 million users of India’s most popular messaging service order products without having to leave the app.
“Large-caps like HDFC Bank and RIL have become strong. High delivery-based buying in these stocks indicate their improving prospects,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services. HDFC Bank shares were down about 0.3% today.
Meanwhile, US President-elect Joe Biden’s nominee for treasury secretary, former Federal Reserve chair Janet Yellen has called on Congress to do more to fight the recession to avoid an even worse downturn.
In testimony prepared for her confirmation hearing today before the Senate Finance Committee, Yellen said more aid is needed to get coronavirus vaccines distributed — key to ending outbreaks — to reopen schools and help families struggling with job losses stay fed and housed.
Tuesday 12:25? Reliance Industries Ltd.: 2,027.40? volume: 9,010,913.00
“The major positive development for markets today is the Treasury Secretary-elect Janet Yellen’s comment on the need for ‘big stimulus’. Further big stimulus along with the huge liquidity created by the unprecedented monetary stimulus can keep markets buoyant; but there is a risk of bubble valuations with its vulnerability to sharp corrections, even crashes,” VK Vijayakumar said.
Asian markets were mostly higher today.
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments, also remains cautious on markets. “Although we have opened with a gap up, I would be wary of going long immediately. The Nifty has a resistance around the 14550-14600 levels. If we can conquer that, we should be headed to 14900. Until then there is every possibility to go down to levels closer to 14100 and then 14000,” he said.
Elsewhere, Maruti Suzuki India Ltd shares rose 2% after the country’s largest automaker by market value said on Monday it will raise prices for some car models to mitigate the impact of rising costs.
Mindtree Ltd shares rose as much as 4% after the information technology services provider reported strong December quarter results on Monday. (With Agency Inputs)
News Source:- Livemint