MUMBAI: Benchmark stock indices gave up most of their gains towards the end of the session today as investors were unable to take long positions over the weekend amid the current uncertainties of Covid-19.
The ongoing second wave of infections in the country has created uncertainty about more local restrictions that could cloud investors’ ability to predict short-term economic and earnings growth, analysts said.
On that day, the Nifty50 index closed 0.3 percent or 36.4 points higher at 14,617.85 while the BSE Sensex closed at 48,832.03, up 0.1 percent or 28.35 points.
In the broader market, gains were more pronounced as the Nifty Midcap 100 and Nifty Smallcap 100 indexes closed 1.0 percent and 1.1 percent higher, respectively.
Here are the most important factors in trading today:
SBI cards are rising in the Citibank news
Shares in India’s second largest credit card company rose nearly 7 percent as it was believed the company might consider acquiring Citibank’s thriving credit card business in India. Citibank announced on Thursday that it would be leaving the consumer lending business in the country. With HDFC Bank banned from attracting new credit card users right now, analysts believe this could pave the way for SBI Cards to either take over Citi’s operations or gain market share if Citi’s credit card users jump the ship.
rises to new aggression
Wipro’s shares rose 9 percent as investors were impressed by the aggression of the new management over growth prospects and deal wins. The company was targeting steady currency growth of 2-4 percent for the June quarter, above Street’s estimate.
Metal stocks are benefiting from the weakness of the dollar
Base metal producer stocks rose, tracking similar gains in global metal prices. Global metal prices rose on the weakness of the US dollar and signs that the global reserve currency could continue to fall in the future. The Nifty Metal Index rose 0.8 percent.
What gave the buy signals?
Up to 39 stocks listed on the National Stock Exchange gave a buy signal based on MACD indicators, including NALCO, ONGC,
and Indus Towers.
What is in store for the market?
Traders continued to sell call-and-put options on the Nifty50 index with no money, suggesting the index will move in a tight range next week. In the futures segment, traders added long positions to the index in the April contract as the open positions rose 9.2 percent for the time being.
“Surprisingly, despite rising Covid cases, markets are showing tremendous resilience, but sustainability at higher levels seems difficult if this trend continues,” said Ajit Mishra, vice president of research at Religare Broking.