Mumbai– Stimulus announcements by the Centre did not enthuse the Indian equity markets on Monday, as the key indices closed on a flat-to-positive note.
Expensive propositions along with profit booking also impacted the market sentiment.
Significantly, the markets were expecting a higher capital layout for the schemes announced under the stimulus package.
However, buying in IT, pharma, FMCG and other defensive stocks led the market to close on a flat-to-positive note.
The two key indices witnessed a gap-up opening after which the Nifty50 on the National Stock Exchange (NSE) touched the 12,000-mark for the first time since February 2020.
Similarly, the S&P BSE Sensex made healthy gains. It crossed the 40,900 points in early trade.
Nevertheless, profit booking and investors’ disappointment over the stimulus package became evident with markets paring their early gains.
Consequently, the S&P BSE Banking index closed at 40,593.80, higher by 84.31 points or 0.21 per cent, from its previous close.
The Nifty50 traded at 11,930.95, higher by 1 6.75 points or 0.14 per cent, from its previous close.
“To sustain the market trend, a lot will depend on the size and effectiveness of the stimulus. Cash voucher and advance scheme, sops to government employees, failed to cheer the market as it did not provide the required boost to the economy as expected,” said Vinod Nair, Head of Research at Geojit Financial Services.
“It is anticipated that more measures will be revealed in the future. The market will look forward to Q2 results with high hopes. IT, banks and FMCG will be the sectors under focus in the near-term,” he added.
According to Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services: “Technically, the major trend of Nifty is positive. However, given that gains of around 1,200 points were achieved in just 12 trading sessions from 10,800 to 12,000 zones, hence a consolidative move could be better to commence the next leg of rally towards lifetime high territory – 12,000-12,200 – while support has moved higher at 11750.
“Investors would react to the earnings season which is taking shape with key IT companies reporting their numbers initially and showing strong trend so far. Market would also keen an eye on the Supreme Court which is scheduled to hear the loan moratorium case on October 13, which is very crucial for the banks.” (IANS)
