Sensex reclaims 80,100 levels, Nifty above 24,400 ; global cues aid buoyancy on D-Street
Considering days high levels, Nifty is still 2.61 per cent away from its all-time high scaled on August 1.
Amid an optimistic mood, Indian equity benchmarks notched sharp gains and in the process the 30-share Sensex has reclaimed 80,100 levels, clocking over 1 per cent gains. Meanwhile, the Nifty also traded near day's high levels at 24,425 levels, up 1.17 per cent.
Globally after the US recession fears took over and the unwinding of the yen carry trade also surfaced, markets worldwide faced sharp sell-off on August 5. Nonetheless, in around 10 days as the US economic data came through global markets showed immense resilience and recovered smartly.
From the Nifty pack, top gainers included stocks like Wipro, Tech Mahindra, LTIMindtree, Tata Motors and Mahindra and Mahindra, while the laggards included stocks like SBI Life Insurance, Hero MotoCorp, Divi's Lab and Sun Pharma.
Sectorally, the IT and Realty indices topped, with others also witnessing gains of over 1 per cent. The mood on the D-Street is boosted by the latest retail sales print in the US which quelled recession in the US.
Ola Electric Mobility shares will debuted on the Street last Friday have risen immensely after weak debut. The stock last was up near 19 per cent at Rs 131.35, a significant 72 per cent against the stock's debut as well as issue price of Rs 76 per share.
Prashanth Tapse, Senior VP (Research), Mehta Equities said traders are likely to adopt a risk-on approach, driven by strong cues from Wall Street, the expectation of a rate cut by the Federal Reserve in September, and robust US retail sales figures, which have eased recession concerns.
However, risk appetite is expected to improve significantly only above the Nifty 24,497 mark. In Wednesday’s session, he added. Technically, Nifty options data suggests a trading range of 24,000-25,000, with 25,000 acting as a key resistance level, addded Tapse.
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