Nifty: Market Watch: What caused the strong rally in benchmark indices today?

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Saloni Goel, and here are the top headlines at this hour.

Zee Entertainment starts legal proceedings against RailTech
Tata Consumer to acquire Tata SmartFoodz for Rs 395 cr
Passenger vehicle sales in local market declines 27% in Oct
Paytm’s $2.5-billion IPO mints new millionaires
India’s Q4 smartphone shipment to decline

Let’s take a quick glance at what happened on Dalal Street today.

After a three-day hiatus, domestic equity markets were back in action as bulls took over the charge on Dalal Street. Benchmark indices ended the week with sharp gains, thanks to positive global cues. However, outflows of FII and Inflation woes remained as the key concerns among the traders. Markets staged a swift recovery in the second half, thanks to gains in IT, metal, reality and financial shares. The BSE barometer Sensex gyrated in the range of 830 points.

The benchmark index added about 770 points to settle marginally below 60,700. Its broader peer, Nifty50, rallied about 230 points to end the week at just about 18,100 mark. Broader markets underperformed the headline peers but BSE midcap and smallcap indices were able to settle in green. Fear gauge India VIX dropped 7 per cent to slip below 16 mark.

Tech Mahindra rallied 4 per cent, the most on BSE Sensex. It was followed by HDFC and Infosys which rallied 3 per cent each. Bajaj Finserv, Airtel, Asian Paints, Bajaj Finance, Nestle and Sun Pharma added 2 per cent each. Reliance, L&T, ITC, M&M, HUL, TCS, HCL Tech and Kotak Mahindra Bank gained a per cent each. On the other hand, only five stocks settled in red, with Bajaj Auto falling over 3 per cent. Tata Steel shed a per cent. Axis Bank, NTPC and Power Grid also settled in red. More than 315 stocks hit upper circuit limits for the day and the over 180 stocks hit the lower circuit. About 110 stocks tested their 52-week highs during the session.

We have Arijit Malakar from Ashika Stock Broking to share his views on the day’s action and the road ahead:
Welcome to the show sir:
1. What were the key reasons behind the strong rally in benchmark indices today?
2. There has been a lot of fancy for startup IPOs despite high valuations. Should investors be alarmed over it?

We also caught up with Nilesh Jain from Centrum Broking to decode the technical charts for you.
1. Nifty settled at about 18,100 mark. What do the technical charts suggest about it?
2. Nifty Bank showed some strength after a few sessions. Where is it headed now?

Asian markets settled higher for the day. Major European markets were trading mostly with gains in the first few hours of trade. US stock futures were up hinting towards a positive start to US equities later in the day.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!