India’s benchmark equity index S&P BSE Sensex closed above the 34,000-mark on Tuesday, capping its longest bull run without a 5 per cent fall in a single year in over two decades. The broader index CNX Nifty of the National Stock Exchange closed above the 10,500-mark. The Sensex closed at 34,010, and the Nifty at 10,531.
A stock market rally during this time of the year, on low trading volumes, is described as a Santa Claus rally. Equity market trading volumes across the world are less than half during this holiday-shortened week folowing Christmas.
The real action in the markets can be seen only from next week, when fund managers take a fresh call on cash allocation to various asset classes. Stock markets in Europe remained closed, but futures trading in the US market indicated a marginal weakness as analysts cut the forecast for iPhone shipments for the next year.
The BSE held a cake-cutting ceremony at one of its entrance gate where it had placed a bull to mark the record high closing of the Sensex.
India’s stock market rally, mainly supported by huge cash inflow from domestic institutional investors, got a further boost on Tuesday as they pumped in ₹544 crore, provisional data showed. Foreign portfolio investors, most of whom were absent from the markets in the holiday week, were net sellers of stocks worth ₹44.07 crore in the cash equity segment.
Tuesday’s rally in key indices was supported by a 1.69 per cent rise in the share price of Reliance Industries, which has nearly doubled in market capitalisation this year.
Top gainersAmong others, Bharti Airtel, Sun Pharma, YES Bank and Tata Steel were the top gainers in the Sensex and the Nifty. Most public sector banking shares declined.
The share price of Anil Ambani’s Reliance Communications, which rose by 40 per cent ahead of the company’s press conference, was the highlight of Tuesday’s market trading. The spurt in RCom shares has surprised many as most retail traders have been staying away from the counter, given the debt woes of the company.