Stock Market sends salutes to G20 Summit; indices gain from geostrategic play

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By S Jha

New Delhi, September 8: Heads of the states have begun arriving in New Delhi for the G20 Leaders’ Summit. There is a buzz around India Story as well with the Indian presidency of the G20. The indices gained strength from the feel-good factor oozing out of the G20 presidency of India.

Nifty closed above 19800 level, while it was briefly above 19850 level also during the day. The Bank Nifty buzzing in its zone showed strong momentum during the day and one time the index had the gains of over 500 points. Both the indices are riding momentum, with frontliners offering leadership to sustain the rally.

The power sector was buzzing in the session. The power demand in India is currently at a record high. Also, the government has reiterated its commitment to phase out coal-based power gradually. Overall, the power sector rally was led by the financials. Power Finance Company and Rural Electrification trended in tandem, both netting gains of over 10 per cent each, It may be noted that both the scrips are trending for over a month now, and they have gained substantially in a short span of time.

NTPC, Coal India, Tata Power, and others also were trending during the day. There was a secular rally in the power sector. Indian Energy Exchange is also steadily gaining, as the scrip closed above Rs 140 level.

After Prime Minister Narendra Modi’s 12-point proposal made during the ASEAN-India Summit yesterday in which he spoke of the multimodal connectivity of the 10-nation block with Europe through India and West Asia, the railway and shipping stocks gained further momentum on the bourses. The likes of IRCON, Rail Vikas, RITES, IRFC, Shipping Corporation, Container Corporation, and others made handsome gains on the bourses. With India being seen a crucial factor in the Indo-Pacific, the maritime strength of the country is likely to be in focus, which is seen to be driving the likes of Cochin Shipyard, Mazhgaon Dock Shipyard, Garden Reach Shipyard and others in strong zones.

During the day Nvidia also held parleys with the Indian IT firms, and the AI theme may also be watched out in the next few sessions as this has been driving NASDAQ for a while.