Benchmark BSE Sensex and broader market Nifty 50 hit record highs for the second day in a row. The rise in the indices was driven by sharp gains in IT, power, healthcare and metal stocks. The Sensex was up 662.63 points or 1.16 per cent at 57,552.39 and the Nifty was up 201.20 points or 1.19 per cent at 17,132.20. Around 1,434 shares rose, 1,537 shares declined and 105 shares remained unchanged. Bharti Airtel, Bajaj Finance, Eicher Motors, Hindalco Industries and Shree Cements were the top gainers in the Nifty. Tata Motors, Nestle, IndusInd Bank, Reliance Industries and BPCL were among the top losers. All sectoral indices ended in the green with IT, power, health, metals, oil and gas indices, while BSE Midcap and BSE Midcap and Smallcap indices rose over 0.5 per cent.
“Domestic equities extended gains within a month with Nifty crossing the 17,000 level. Markets backed by consistent buying momentum across sectors and favorable global cues. Notably, all major sectoral indices are witnessing a strong recovery with metals, financials (except banks) and pharma trading in the green. Bharti Airtel was in focus again as the stock rose over 7 per cent today on the back of clarity on fund raising and indications of tariff hike. However, midcap and smallcap stocks underperformed today and a number of midcap stocks saw profit-booking. The volatility index also rose over 7 per cent. Bharti Airtel, Hindalco, Eicher Motors and Bajaj Finance were among the top Nifty gainers, while Tata Motors, Nestle, IndusInd Bank and Reliance Industries were among the laggards,” said Binod Modi, head strategy at Reliance Securities.
Taking positive cues from global and Asian counterparts, Indian markets opened in the green in early trade and managed to move higher throughout the day. Clarity about easing easy money policy in the United States fueled sentiment on Dalal Street. “After a positive start, the market climbed higher throughout the day to close a new lifetime high at 17,153.50 level and closed 201.15 points higher at 17,132.20. On the daily chart, Nifty 50 index has broken the psychological level of 17,000 with increase in volumes and a straight upward rally which indicates strength in the counter. Moreover, the index has given a breakout on the rising trendline as well as its trade above the upper band of Bollinger Formation, which suggests presence of counter bullishness,” said Palak Kothari, Research Associate, Choice Broking.
Apart from Indian markets, US benchmark indices including the Dow Jones Industrial Average, Nasdaq Composite rose yesterday. And in addition to US benchmark indices, Asian stock markets also rose sharply, in keeping with the nostalgic stance taken by US Fed Chairman Jeremy Powell while speaking at the Jackson Hole symposium.
“Led by the bulls, domestic indices broke record highs amid broad-based buying on the continuation of the Fed’s dovish policy and expected release of domestic GDP data. With many business activities reversing to pre-Covid-19 levels, RBI had projected June quarter GDP to grow at 21.6 per cent year-on-year,” Vinod Nair, Head of Research, Geojit Financial Services:
With today’s GDP data, which is expected to be in double digits thanks to a low base, it is expected to pave the way for another sharp rally since the pandemic hit us .
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