Robust Q2 results drive rally on D-Street for sixth session

A potential trade deal remains a crucial trigger that participants are closely monitoring. Currently, the risk-reward ratio is largely favorable, bolstered by stronger-than-expected Q2 earnings from Midcaps, which have reinforced confidence in growth revival and point to potential future earnings upgrades - Vinod Nair, Head-Research, Geojit Investments Ltd

Stock markets rose for the sixth straight session on Monday, with the benchmark Sensex climbing 388 points and Nifty closing above the 26,000 mark following an across-the-board rally and strong quarterly performance by corporates.

Rising for the sixth consecutive day, the 30-share BSE Sensex climbed 388.17 points, or 0.46 per cent, to close at 84,950.95. During the day, the BSE benchmark surged 425.31 points, or 0.50 per cent, to hit an intraday high of 84,988.09. The broader NSE Nifty rose by 103.40 points, or 0.40 per cent, to settle at 26,013.45. In the intraday session, the NSE Nifty advanced 114.15 points, or 0.44 per cent, to hit a high of 26,024.20. Traders said strong buying by domestic institutional investors fueled the rally.

“The market has maintained its positive momentum, hovering near the key psychological level of 26,000, as investors anticipate a strong catalyst for further upward movement. “A potential trade deal remains a crucial trigger that participants are closely monitoring.

Currently, the risk-reward ratio is largely favorable, bolstered by stronger-than-expected Q2 earnings from Midcaps, which have reinforced confidence in growth revival and point to potential future earnings upgrades,” Vinod Nair, Head of Research, Geojit Investments Ltd, said.

From the Sensex pack, Eternal, Maruti Suzuki India, Kotak Mahindra Bank, Mahindra & Mahindra, Tech Mahindra, Titan, HDFC Bank, PowerGrid, Bajaj Finserv, HCL Technologies, Bajaj Finance and Larsen & Toubro were among the gainers. On the other hand, Tata Motors Passenger Vehicles, Asian Paints, UltraTech Cement, Bharat Electronics Ltd, Tata Steel, Adani Ports, Hindustan Unilever, ITC, Tata Consultancy Services and Reliance Industries were the only laggards.

“Indian benchmark indices closed sharply higher on November 17th, with the Nifty reclaiming and firmly holding above the 26,000 level. Expectations of a major trade deal added to the optimism, acting as a potential catalyst for the next leg of the rally.”