InvestorQ : What is your view on the stock markets for Monday 07 December 2020 after the sharp rally in the Nifty and Sensex on Friday?
Arusha Ray made post

What is your view on the stock markets for Monday 07 December 2020 after the sharp rally in the Nifty and Sensex on Friday?

Answer
image
diksha shah answered.
5 months ago
Follow

There was a really strong rally on Friday and that was largely an outcome of the positive cues coming from the RBI accommodative stance. For the time being, the RBI ruled out any shift in stance including any rate hike till end of 2021, something markets relished a lot.

The good news for Bharti was in the telecom subscription numbers for September. Bharti Airtel was the big gainer in terms of fresh subscribers adding almost 3.7 million fresh subscribers. Vodafone continued to lose customers and we could see more of a trader shift from speculative Vodafone to Bharti Airtel.

There is no let up in FPI buying in December. In fact, FPIs were net buyers to the tune of Rs.2970 crore while DFIs sold Rs.1972 crore on Friday; the 04 of December. FPIs have infused Rs.17,300 crore in the first four days of December and this comes on top of a whopping Rs.66,000 crore infused in November month alone.

The positive sentiments demonstrated by the Indian markets on Friday spilt over to the US and European markets also. However, the SGX Nifty is cautious in early trades even as the valuations have touched P/E of 36. Markets could be mixed with most action at a stock level.

There were some positive cues from the volatility index or VIX. With markets being stable above 13,250 on the Nifty, the VIX added to the strength by falling to as low as 18.2 levels. This could set the stage for another sharp rally from current levels.

1 Views