Stocks

Sensex continues northward journey despite US-China trade bickerings

Our Bureau Mumbai | Updated on June 01, 2020 Published on June 01, 2020

Despite reports of resurgence of trade bickerings between the US and China, stock markets globally, including India, saw an upward movement. On Monday, the Nifty index rose 2.57 per cent or 246 points to close at 9,826. The Sensex rose 2.71 per cent or 879 points to close at 33,303 points.

Bulls seemed to have unlocked themselves in the domestic market. In just three trading sessions, the Nifty index has managed to gain nearly 1,000 points. The Bank Nifty index, which saw maximum pressure during May, witnessed a near 2,000-point rise in three trading sessions. The index gained 3.43 per cent or 662 points to close at 19,959. In the cash segment, Foreign portfolio investors (FPIs) made stock purchases worth ₹1,575 crore. Domestic institutions were net sellers to the tune of ₹459 crore.

“The strategy should be to buy on dips,” said Shrikant Chouhan, Executive Vice-President, Equity Technical Research at Kotak Securities. “Technically, the market has managed to surpass the previous highest level of 9,889 which is positive for the market. On the other side, the Nifty’s earlier resistance levels 9,550/9,600 would act as a major support for the market,” he added.

Fund managers told BusinessLine that they were glued to the US markets after civil riots were reported across the country since Sunday, forcing President Donald Trump to take refuge in a bunker at the White House.

In less than six months, US is the third big country to have seen rioting on a large scale after streets turned bloody in India’s capital New Delhi and Hong Kong, and this is worrying pattern, a fund manager said.

Published on June 01, 2020
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