Why did the stocks managed to sustain their rally for the fifth day in succession on 23 June?

The rally that started in the Indian markets on Thursday has sustained till Tuesday. On Tuesday, Indian stocks closed 1.5% higher. Nifty Bank index gained 2.8% with even the IT index closing 1.5% higher despite the visa suspension announced by Trump. L&T was the star of the day with a slew of order flows changing the sentiments around the stock.

There was also good news on the geopolitical front. Stock markets welcomed reports that that top military commanders of the Indian and Chinese armies had reached a consensus to disengage and return to the status quo. FIIs also continued to be buyers in the Indian markets. The up-move in index supported by broader market participation

Global cues were also positive and the Nifty and Sensex aligned with global indices as liquidity continued to be robust. Markets continued to be optimistic in spite of the new virus infections reported globally and the rising incidence in India. However, the global situation is still volatile and hence some caution may be warranted despite the rally.