Stock markets remain upbeat
Buoyed by the Reserve Bank's liquidity boosting measures, the Indian benchmark indices rose for the seventh consecutive session on Friday, making it the best winning streak in almost a year
Mumbai: Buoyed by the Reserve Bank's liquidity boosting measures, the Indian benchmark indices rose for the seventh consecutive session on Friday, making it the best winning streak in almost a year.
The markets' upswing was maintained despite a status quo in key lending rates announced by the RBI. However, analysts noted that gains came on the back of the Reserve Bank's positive outlook along with its decision to maintain the accommodative stance and measures for a liquidity boost.On the global front, positive cues as renewed hopes for fresh US stimulus kept investors' sentiments high.
The S&P BSE Banking index closed at 40,509.49, higher by 326.8 2 points, or 0.81 per cent, from its previous close. The Nifty50, on the National Stock Exchange, ended the day's trade at 11,914.20, higher by 79.60 points, or 0.67 per cent, from its previous close.
"Banks and Housing finance stocks rose post the RBI MPC meet outcome even as the rates have been kept unchanged and stance remains accommodative," said Deepak Jasani, Head of Retail Research at HDFC Securities.
Markets have become overbought after relentless rise over the past 2 weeks. Over the next 1-2 days we expect even the Nifty to come under some pressure as largecaps also need to consolidate or correct after such a rise, he added.
According to Vinod Nair, Head of Research at Geojit Financial Services: "Indian indices took a leap today following the positive announcements of TLTRO and OMO, which will help in maintaining a good level of funds available at cheap rates from RBI to the industry."