The Indian markets have started the day higher by recording fresh highs. The BSE Sensex has breached the 41,000 level for the first time while the NSE Nifty is hovering around 12,000 points. The NSE Nifty has recorded its fresh intraday high at 12,126 points, surpassing its previous best of 12,103 in June.
The Indian rupee too has started the day on a positive note by rising against the greenback. The rupee has touched 71.66 against the US dollar. Its previous close was 71.73. The leading banking stocks have rallied to lead the Nifty bank index to its fresh high at 31,796.2 points.
Metal, IT, energy, pharma, and banking stocks are leading the rallying of indices today. The stocks of ICICI Bank, Asian Paints, Tata Steel, Infosys, Yes Bank, and Sun Pharma have risen in the range of 1% and 1.6%. The shares of telecom giant Bharti Airtel were trading 1.5% lower yesterday.
The latest development in the Bharti Airtel’s shares has come on the back of Icra, a rating agency, which downgraded the organisation’s long-term rating to AA- from AA. The market breadth is showing signs of being in positive terrain as BSE small and mid-cap indices rose 0.42% and 0.50% respectively.
The BSE Sensex has managed to close well above 40,000 points so far in November while the NSE Nifty seems like it has reached a support level at 12,000 points. The rallying of the BSE Sensex looks promising and sustainable. The Indian markets went through a disastrous phase between June and August.
The recapitalisation of public sector banks has weighed in on the banking stocks. Both private and public sector banking stocks are rallying in unison. This has led the gain in the NSE Nifty Bank index. It is currently over 31,700 and can see strong support in the range of 31,700 and 32,000.
The Reserve Bank of India (RBI) is expected to roll out a cut in the interest rate in its upcoming policy review meet which is scheduled on 5 December 2019. It is interesting to see what our Finance Minister has in store in the Union Budget 2020-21, which is set to be presented on 1 February 2020. The budget amendments will have a direct impact on the stock markets.
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Engineer by qualification, financial writer by choice. I am always open to learning new things.