Daily Market Commentary - Feb 2, 2021 - Bonanza Portfolio

Mr Vishal Wagh, Research Head

On Tuesday Indian equity benchmarks extended their previous session gains with a gap-up opening as the market continued post Budget rally amid firm global cues. Markets made a sharp up move in the early session and are trading in fine-fettle with gains of over two and a half percent each. Buying in all the sector indices, led by Capital Goods, Industrials and Bankex, supported the domestic indices. In the afternoon session, Indian equity benchmarks continued to trade in fine contour on account of broad-based buying in blue-chip counters amid positive Asian cues. Both Sensex and Nifty are trading around 49,773 and 14,640 levels.

Most of the Asian equity benchmarks are trading higher on Tuesday, as the firm cues from the Wall Street overnight boosted risk appetite in the Asian investors. The accelerated speed of vaccine rollout and optimistic views over US stimulus measures also lifted the sentiments in the market.

The Union Budget document has said that the Indian economy is expected to rebound strongly in 2021-22. It further said that the real Gross Domestic Product (GDP) growth is projected to contract by 7.7 percent in 2020-21 as compared to a growth of 4.2 percent in 2019-20.

In Nifty 50 top gainers are Tata Motors Ltd, State Bank of India, Shree Cement Ltd, UltraTech Cement Ltd and UPL Ltd. The loser was HDFC Life Insurance Company Ltd, Bajaj Finserv Ltd, Hero MotoCorp Ltd, SBI Life Insurance Company Ltd and Titan Company Ltd.

Source : Equity Bulls

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