You are here: Home » Markets » News
Business Standard

Markets begin Samvat 2077 on a positive note, indices gain 0.4%

Buying shares on muhurat day is considered auspicious by some market participants

Topics
Samvat 2077 | Markets

Sundar Sethuraman  |  Thiruvananthapuram 

markets, stock market, sensex, correction, nifty, shares, growth, profit, economy, gain
Samwat 2076 was a roller coaster for markets as they were reeling under the onslaught of Covid-19

started on a positive note for the equity with the benchmark Sensex ending the ceremonial one-hour-long trading session with a gain of 195 points on Saturday. The Sensex ended the session at 43,638, a 0.45 per cent gain, while the Nifty 50 index ended with a gain of 0.47 per cent, or 51 points, to end at 12,770. Amongst Sensex stocks, Bharti Airtel was the best performing stock and rose 1.2 per cent.

"Positive sentiments on account of recent rally, continued FPI inflows and impact of gain in US overnight led to modest gains in Indian Though trend in muhurat trading session does not determine that for the whole year, it gives a good feeling to start on a positive note," said Dhiraj Relli, MD & CEO, HDFC Securities.

Buying shares on muhurat day is considered auspicious by some market participants. Nirav Gandhi, 52, said he is more circumspect on index stocks this year as the indices are back to all-time highs. "I bought shares from the mid-cap universe as I feel the returns from mid and small caps this year will be better than index returns.," Gandhi said. Most investors indulge in ceremonial purchases. Institutional investors and brokers trade to price in global cues or key developments if any.

Samvat 2076 was a roller coaster for markets as they were reeling under the onslaught of Covid-19. After hitting a new high in January, the indices fell almost 40 per cent. The pandemic was like a nail in the coffin to the markets which were reeling under a bunch of issues including low economic growth, corporate defaults and stress in the financial sector.

Many market participants said Samvat 2076 was reminiscent of 2008 financial crisis and the dot com bubble in 2002. However, the monetary easing by central banks across the globe and the advent of retail investors who became active in day trading due to lockdown induced restlessness helped the markets to bounce back.

And last week the indices hit new highs enthused by the election results in the US and progress in covid-19 vaccine trails. The monetary easing made a recovery was as swift as the fall. The benchmark indices have gained 70 per cent from their March lows to scale new all-time highs.

"With recent on the progress of an effective vaccine against covid-19, we appear closer to the end of a difficult period. Despite a year where governments had to balance the physical well-being of citizens and economic stability, financial markets have largely worked efficiently. As the combination of fiscal and monetary stimulus kicks in along with a broad re-opening of the economy, we can expect earnings growth in a coming couple of years to be robust," said S Hariharan, head - sales trading, Emkay Global Financial Services.

Corporate earnings growth will be the most crucial factor in driving the markets in the next year. While some analysts said that the trend of a handful of companies driving the markets could return.

"Within the index, the well-run companies were steady even in the wildness of the last 12 months. The polarisation theme prevalent in the last few years in our country of a dozen companies giving stellar returns and others struggling will continue. In a challenging environment, smart companies will sparkle and weak companies all by the wayside. And that is the consistent theme in the last five years," Saurabh Mukherjea, Founder, Marcellus Investment Managers.

Samvat

Muhurat Date

Sensex

change (%)#

Nifty 50

change (%)#

2063

Oct 21, 2006

12736.82

0.22

3683.50

0.18

2064

Nov 09, 2007

18907.60

-0.79

5663.25

-0.62

2065

Oct 28, 2008

9008.08

5.86

2684.60

6.35

2066

Oct 17, 2009

17326.01

0.02

5141.80

-0.01

2067

Nov 05, 2010

21004.96

0.53

6312.45

0.49

2068

Oct 26, 2011

17288.83

0.20

5201.80

0.20

2069

Nov 13, 2012

18618.87

-0.28

5666.95

-0.29

2070

Nov 03, 2013

21239.36

0.20

6317.35

0.16

2071

Oct 23, 2014

26851.05

0.24

8014.55

0.23

2072

Nov 11, 2015

25866.95

0.48

7825.00

0.54

2073

Oct 30, 2016

27930.21

-0.04

8625.70

-0.14

2074

Oct 19, 2017

32389.96

-0.60

10146.55

-0.63

2075

Nov 07, 2018

35237.68

0.70

10598.40

0.65

2076

Oct 27, 2019

39250.20

0.49

11627.15

0.37

2077

Nov 14, 2020

43637.98

0.45

12780.25

0.47


# change on Mahurat day over previous close

Source:Exchange/Bloomberg

Compiled by BS Research Bureau

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, November 14 2020. 20:43 IST
RECOMMENDED FOR YOU
.