Global cues, oil stocks push markets higher, Sensex gains

Sensex Nifty Equity

Mumbai, March 31 : Positive global cues pushed the key Indian equity indices higher on the last day of the financial year 2019-20.

The two key Indian equity markets indices — S&P BSE Sensex and NSE Nifty50 — rose over 3.50 per cent on Tuesday.

Sector-wise, healthy buying was seen in oil and gas, FMCG and metal stocks.

Globally, major Asian indices closed on a positive note, barring the Nikkei index. European indices like FTSE, CAC and DAX traded in the green.

The S&P BSE Sensex gained 1,028.17 points or 3.62 per cent to close at 29,468.49 points. Similarly, the NSE Nifty50 gained 316.65 points or 3.82 per cent close at 8,597.75 points.

Besides, the overall market breadth was positive with Nifty Midcap 100 up 2.3 per cent, while Nifty Smallcap 100 was up 3.1 per cent.

The Brent crude prices also rose by 3.5 per cent to $23.5 a barrel, after hitting an 18-year low of less than $23 per barrel on Monday.

Furthermore, the rupee appreciated marginally to 75.54 against the US dollar.

“Almost all sectoral indices were up and volatility index was also down by 10 per cent,”said Vinod Nair, Head of Research at Geojit Financial Services.

“Chinese economic data, Industrial production numbers improved and helped the global momentum, especially in Metals, Pharma and FMCG. FII selling also slowed down over the last 2 days, although that may not be sustainable. The performance of global market will be the key driver for Indian market in the near-term.”

Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services, said: “Sentiments also got supported post Johnson & Johnson announcement of a vaccine candidate for the coronavirus. Central banks across the world have mounted an all-out effort to bolster activity with rate cuts and massive stimulus.”

“… the volatility in the market is likely to continue as there is no certainty as to how long the problem will persist and its repercussions on the economy.”

On a technical basis, Deepak Jasani, Head of Retail Research, HDFC Securities said: “While the Nifty has rallied sharply after the correction seen in the previous session, traders will need to watch if the Nifty can convincingly cross last week’s highs for the recent up move to sustain. Crucial supports to watch for resumption of weakness are at 8,551-8,304.”

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