Nifty rebounds on strong Q4 results by banks

Mumbai, April 29 Nifty closed at day’s high with gains of 223 points at 22,643 on Monday.

The majority of the sectors ended in green with buying seen in banking, financials, and oil & gas stocks.

The banking index is up 2 per cent at a record high after index heavyweights like ICICI Bank, Axis Bank, Indusind Bank, and HDFC Bank announced inline Q4 results, while small PSU banks reported impressive quarterly numbers, said Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services.

This week the domestic equities will take cues from the US Fed meeting and economic data globally. The volatility index, India VIX, rose by 12 per cent to 12.30 ahead of these key events and back home Bank Nifty monthly derivatives expiry on Tuesday, he said.

“After witnessing a 1,000-point decline at the start of the month, the index has recovered smartly and it's now 133 points away from making a fresh high. We expect Nifty to continue its positive trend, on the back of a healthy earning season and macro data," Khemka said.

Vinod Nair, Head of Research at Geojit Financial Services, said the Indian benchmark indexes rebounded, aided by an upbeat in US tech quarter earnings and a drop in US 10-year yield. Domestically, the Bank Nifty outperformed, driven by its strong performance in the fourth quarter.

An ease in Middle East tensions and stable earnings are expected to maintain the positive market sentiment. Moving forward, US Fed policy and US non-farm payroll data will dictate the overall market dynamics, he added.

Source: IANS