Mumbai, Oct 8 Indian equity markets rose for the sixth consecutive session on Thursday as buying was sustained on the back of hopes for an upcoming domestic and US stimulus packages.
Accordingly, expectations of healthy Q2 results and the likelihood of RBI's MPC maintaining accommodative stance during the upcoming monetary policy review pushed both key indices, the S&P BSE Sensex and the NSE Nifty50 higher during the day's trade session.
Buying was witnessed in IT, pharma, banks and realty indices, whereas media index fell the most.
Globally, European stocks rose as optimism returned to financial markets on signs that there might be some stimulus for the US economy.
Asian shares were mostly higher on Thursday on optimism US stimulus may becoming as President Donald Trump appeared to reverse his earlier decision to halt talks on another economic rescue effort.
Consequently, the S&P BSE Banking index closed at 40,182.67, higher by 303.72 points, or 0.76 per cent, from its previous close.
The Nifty50, on the National Stock Exchange, traded at 11,834.60, higher by 95.75 points, or 0.82 per cent, from its previous close.
"Markets reacted from the highs after the Nifty made the 4th upgap in the past two weeks. This euphoric rise in the Nifty without backing of any large macro positives suggest continuation of sector rotation," said Deepak Jasani, Head of Retail Research at HDFC Securities.
"The negative advance decline ratio hints at profit taking across the broader market while the traders seem to be concentrating on stocks that are announcing news or developments or results."
According to Vinod Nair, Head of Research at Geojit Financial Services: "A good start to Q2 result led by the IT and banking sector, along with positive announcements like buyback has lifted the market. At the same time, expectation of a stimulus in India and the US has improved."
"Initially, the thought was that the domestic stimulus will be small due to weak fiscal position, which changed positively post few comments from government officials, and now the expectation has become bigger. In the US, an intermediary aid has been provided before the final stimulus which is expected post the election. The market is moving positively in-line with the enhancement of easy money policy and the corporate results."
In addition, Aamar Deo Singh, Head Advisory, Angel Broking said: "Positive global cues, sharp rally in IT stocks along with upmove in Nifty heavyweight HDFC Bank, all contributed to today's upmove."
"Going forward, Nifty has support around the 11,550-11,600 zone whereas resistance on the upside is seen around 11,900-12,000 zone."
( With inputs from IANS )
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