/Sensex gains 200 points, Nifty at 13,530; ONGC surges 7%, SBI up 2%

Sensex gains 200 points, Nifty at 13,530; ONGC surges 7%, SBI up 2%

NEW DELHI: Benchmark indices opened higher on Friday despite mixed cues from other Asian markets. The gains were led by buying in oil & gas, FMCG and banking stocks.

US indices settled mostly lower in overnight trade amid uncertainty over the US stimulus package and Brexit. Asian markets were also mixed in early trade on Friday, but domestic stocks gained after a brief halt in the buying momentum the previous day.

At 9.20 am, the BSE Sensex was trading 210.59 points or 0.46 per cent higher at 46,170.47. The NSE barometer Nifty50 was ruling at 13,534.40, up 56.10 points or 0.42 per cent.

Factors driving markets
ECB stimulus: There was some good news on the stimulus front in Europe as EU leaders finally resolved a bitter dispute with Poland and Hungary that saved a landmark 1.8-trillion-euro ($ 2.1-trillion) recovery plan for the beleaguered bloc, Reuters reported. The The European Central Bank’s Governing Council, which met on Wednesday and Thursday, extended and expanded programs intended to keep borrowing costs low for eurozone businesses and consumers reeling from heightened lockdowns and mounting job losses.

Technical momentum: Gaurav Ratnaparkhi of Sharekhan said that the selling pressure on the index on Thursday was absorbed during the 20-hour moving average and from there the index attempted recovery towards the end of the session. “The hourly chart shows that the Nifty50 is trading in a rising channel. The lower channel line coincides with the 40-hour exponential moving average and the hourly lower Bollinger Band at 13,350. Going ahead, the 13,400-13,350 will act as a crucial support zone. The overall outlook continues to be positive with a short term target at 13,700,” he said.

How are bluechips doing
In the Sensex pack, ONGC was the biggest gainer, rising 6.55 per cent at Rs 97.60. SBI added 2.04 per cent to Rs 275.10. NTPC advanced 1.70 per cent to Rs 98.90. Bajaj Finance, Tata Steel, M&M, IndusInd Bank and Sun Pharma gained over 1 per cent.

Infosys was the top Sensex loser. It fell 0.75 per cent to Rs 1,158.75. Tech Mahindra, Asian Paints, Nestle India, Maruti Suzuki and HCL Tech fell up to 0.6 per cent.

Broader markets
Broader market indices outperformed the headline peers. BSE Midcap rose 0.64 per cent while BSE Smallcap added 0.93 per cent. Allcargo Logistics surged 8.91 per cent to Rs 12.40. Kalpataru Power soared 8.6 per cent to Rs 329. Reliance Infra advanced 7.27 per cent to 28.05. DHFL and Vakrangee added 5-6 per cent. SpiceJet added 4 per cent after the airline announced partnership with Om Logistics and also signed a pact with Snowman Logistics, for the transportation of Covid-19 vaccine.

TVS Motor rose 2.2 per cent after Chairman and MD Venu Srinivasan said members of the TVS family have agreed to subscribe to the terms of a memorandum of family arrangement to align and synchronise the ownership of shares in various group companies. In a letter posted on BSE, Srinivasan said the senior members of the TVS family would deliberate to implement the family arrangement

Asian markets
Asian markets were mixed as stalled US stimulus talks and rising virus infections continued to counter vaccine optimism, while the pound struggled after Boris Johnson warned Britain could crash out of the European Union without a trade deal. Australian S&P/ASX 200 was down 0.30 per cent in early trading, while Japan’s Nikkei 225 was down up 0.48 per cent. Shanghai Composite was flat at 3,373.01. Meanwhile, Hong Kong’s Hang Seng index added 0.92 per cent

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