InvestorQ : What is your outlook for the Nifty and the Sensex for stock market trading on 02 December 2020?
Dawn Cherian made post

What is your outlook for the Nifty and the Sensex for stock market trading on 02 December 2020?

Answer
image
diksha shah answered.
3 months ago
Follow

On Tuesday, the markets opened after a gap of 3 days holidays but the Nifty and the Sensex managed to close at a new high. This was led by the GDP contraction at -7.5% being much better than expected. In addition, Moderna has been making progress on the vaccine and the Russian Sputnik is also nearing fruition.

There were some concerns on the peak margins front but it now looks like the impact, if any, could be limited to only the F&O segment and not such to the cash segment. Hence the cash market buying was unlikely to be really impacted in any significant way.

On Tuesday, the cement stocks rallied due to better than expected core sector numbers for October. This hinted at recovery in cement output driven by better pricing power. This had positively re-rated cement companies as well as cement holding companies.

There was little let up from the foreign investors. For example, FPIs were net buyers of Rs.3242 crore while DFIs sold Rs.1043 crore on Tuesday. On the first day of December, the momentum appears to be sustaining despite the FPIs having infused Rs.63,000 crore in November.

Global markets continue to be robust and buoyant. Markets across the US, Europe and Asia were positive gaining over 1.5% on Tuesday. SGX Nifty is trading in the positive in early trades. Watch out for the cues from Asia. Undertone continues to be positive and optimistic.

4 Views