A rally in market heavyweight Reliance Industries or RIL and Infosys helped support Indian stock markets today. Indian stock market index Sensex today swung between gains and losses after a mammoth 3, 000 – point rally in the previous two days. Many brokerages have upgraded their earnings estimates of India Inc and Sensex targets on optimism that Friday’s corporate tax cuts will lift corporate profitability, private capex and ultimately the broader economy. The Sensex ended marginally higher at 39, 097, up 7 points. The broader Nifty ended 0.1% lower at 11, 588.
Market heavyweight Reliance Industries or RIL today gained 3% to settle at₹1, 277.Reliance Industries Ltd (RIL), which aims to become a debt-free company by March 2021, may start spending heavily again to upgrade its chemicals business once it repays its₹1. 54 trillion of outstanding debt,Mintreported citing two people aware of the talks.
IT major Infosys rebounded today, ending nearly 4% higher today.
Some profit-taking was seen in banking stocks after sharp gains in the past two sessions. The Bank Nifty, which had surged 14% over the previous two sessions, fell 1. 25%.
Among banking stocks, SBI fell 4% while Axis Bank 3%.
India’s biggest carmaker Maruti Suzuki today rose 2% after the company’s chairman RC Bhargava that car sales in September are likely to be higher than the previous month.
Foreign institutional investors bought Indian stocks in a big way on Monday, putting in a net₹2, 684. 05 crore in Indian equities.
In terms of market technicals, Nifty has support at in the range of 11400 – 11300 while the index faces near- term resistances around 11705 – 11800, said Ruchit Jain of Angel Broking.
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