Two reasons the markets ended higher today

By Aditya Raghunath – and breaking two consecutive days of losses to post gains of 1.27% and 1.17% respectively. Metals, consumer goods and autos stocks were also bought up and rose 0.94%.

Tata Steel Ltd (NS 🙂 led the list of winners on Nifty with a gain of 5.89% followed by Bajaj Finserv Ltd (NS 🙂 at 4.45%. Titan Company Ltd (NS :), Tata Motors Ltd (NS 🙂 and Asian paintings Ltd. (NS 🙂 all gained over 3.95% each. Most of the Tata group’s actions were up on the Supreme Court ruling which dismissed Cyrus Mistry’s claims and ruled in favor of the Tatas.

Apart from the Tata decision, two reasons for the rise in the markets were:

  1. Good GDP and Unemployment Figures in the United States: Unemployment figures in the United States were at their lowest for a year as economic activity began to rebound. The Commerce Department said U.S. GDP grew at an annualized rate of 4.3%.
  2. Strong Global Indices: Asian stocks ended higher with a rise of 1.56%, a rise of 1.09% and a rise of 1.63%. Europe also opened higher with and trading up 0.62%, 0.24% and 0.58% respectively at the time of this report. US futures are also trading and stock markets are expected to open slightly higher later, but not enough to leave them in the green for the week.

The Federal Reserve has signaled that any risk to the stability of the banking system linked to the pandemic has peaked. He announced Thursday that he would lift restrictions on dividends and share buybacks from most banks that he had imposed at the start of the pandemic.

After reserving tens of billions of dollars in provisions against possible credit losses, banks posted a strong rebound in profits in the third quarter before appearing to falter again in the last quarter of 2020.