Banks defy Global Markets; Lead Massive Rally in Indian Markets Today

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Banks defy Global Markets; Lead Massive Rally in Indian Markets Today

By Aditya Raghunath

Investing.com -- Nifty 50  and the BSE Sensex 30 ended up 1.67% and 1.74% respectively led by a massive rally in bank stocks even as global cues pointed down.

The top five stocks on Nifty today were all bank stocks. IndusInd Bank Ltd. (NS: INBK ) gained 7.54% while State Bank Of India (NS: SBI ) closed up 6.66%. ICICI Bank Ltd (NS: ICBK ) gained 4.45% while HDFC Bank Ltd (NS: HDBK ) and AXIS Bank Ltd (NS: AXBK ) gained over 3.4% each. Nifty Bank closed up 4.01% today.

Cipla Ltd. (NS: CIPL ) and Bharti Airtel Ltd. (NS: BRTI ) lost over 2.2% each today while Larsen & Toubro Ltd (NS: LART ) closed down 1.91%. SBI Life Insurance Company Ltd (NS: SBIL ) lost 1.4% while Nestle India Ltd (NS: NEST ) closed 0.45% lower.

The rally in Indian markets was in sharp contrast to other Asian markets. Nikkei 225 and KOSPI 50 lost 0.92% and 0.6% respectively while Shanghai Composite pared early gains of over 1% to end up 0.78%. In Europe, FTSE 100 , Lyxor UCITS CAC 40 (DR) D-EUR (PA: CAC ) and DAX have all opened in the red.

US stock markets are set to open the week in cautious mode, against a backdrop of the selloff in crypto that may bode ill for other high-beta assets such as technology stocks. Crypto aside, the emergence of a new and more highly transmissible strain of the Covid-19 virus in India has cast fresh doubt on the world economy’s path to reopening. Dow Jones 30 Futures are down 0.34% while S&P 500 Futures and Nasdaq 100 Futures are down 0.32% and 0.37% respectively.

Why did Indian markets rally?  

Two major reasons behind the rally in Indian markets are the approval of the DRDO drug and the expected pick-up in the speed of vaccination roll-outs.

   

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  • Equity King @Equity King
    There is no reason of rise and fall.The market is manipulated by big players to loot common public money. When corona cases were on peak citizens were dying on the road no admission in hospitals lack of oxygen then market was rising. Now market rose today, why? Approval of DRDO drug. Good joke
    Like 2
  • Ved Mawndia @Ved Mawndia
    Big players are making position in f&o FII taking money out this is the of bull run , market will move sideways ,don't make long position be cautious, market can soon see 13700 levels
    Like 1
  • sushil garg @sushil garg
    yes absolutely
    Like 0
  • Amol Ambapkar @Amol Ambapkar
    tomorrow will be profit booking .
    Like 4
  • Amol Ambapkar @Amol Ambapkar
    tomorrow will be profit booking .
    Like 1
  • Amol Ambapkar @Amol Ambapkar
    tomorrow will be profit booking
    Like 1
  • Vinoth Kumar NS @Vinoth Kumar NS
    One more reason is significant decrease in daily covid cases.
    Like 1
  • MM Agarwal @MM Agarwal
    Very uncertain movements
    Like 0
  • Ganesh Kumar @Ganesh Kumar
    going down
    Like 1

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