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Benchmark indices maintained the momentum at record high levels for the second consecutive session on Tuesday, amid all round buying.
The US Federal Reserve Chairman Jerome Powell-triggered rally extended further on Tuesday, despite benchmarks recording fresh high on each passing days.
The BSE Sensex surpassed the 57,000 mark, recording a fresh high of 57,164.98. At 12:30 pm, it was trading at 57,157.13, up 267.37 points or 0.47 per cent. It recorded an intraday low of 56,859.10. The Nifty 50 surpassed the 17,000 mark with an all-time high of 17,012.30. Remaining above the mark, it was trading at 17,011.20, up 80.15 points or 0.47 per cent. It recorded an intraday low of 16,915.85.
Gainers and losers
Bajaj Finserv, Adani Ports, IOC, Bharti Airtel and Bajaj Finance were the top gainers on the Nifty 50 while Tata Motors, IndusInd Bank, Nestle India, Reliance and Britannia were the top losers.
Bharti Airtel stock remained in focus after the company’s Board of Directors approved the plan to raise further capital. The Telecom services provider has announced a ₹21,000-crore rights issue. Airtel was up 2.30 per cent.
According to Santosh Meena, Head of Research, Swastika Investmart Ltd, the BSE is likely to surpass ₹250-lakh-crore market cap this week. It was ₹247 lakh crore at 12:30 pm.
“The festival season has begun in Indian equity markets as well. Indian equity markets are showing strong resilience and climbing all walls of worry that is a clear sign of a strong bull market,” said Meena.
“Globally, liquidity is one of the important factors which can be attributed to this rally. Most of the central banks across the globe are supporting their economy through easy monetary policy where US Fed is continuing its dovish stance that is leading to lower US bond yields and weak US dollar which are always considered positive for emerging markets like India,” Meena added.
Fiscal support from the government, strong macro data and India’s progressing vaccination drive are other important factors. However, a weak monsoon can be a dampener for investors.
Also read: Internet-based cos may enter Nifty, Sensex: UBS
“In the near term, Indian Markets may outperform where rising Covid-19 cases in the US could be a negative factor while inflation could be another risk factor amid rising commodity prices,” Meena said.
Strong macro data may continue to support our markets whereas FIIs’ outflow in China due to new regulations could be long-term positive for the Indian markets.
Green all around
On the sectoral front, all indices were in the green. Metals, PSU Bank and Healthcare stocks recorded the highest gains.
Nifty Metal was up 1.17 per cent while Nifty PSU Bank was up 1.25 per cent. Nifty Healthcare Index was up 1.16 per cent.
Strong buying was also witnessed in realty, consumer durables, financial services and oil & gas.
Nifty Realty was up 0.83 per cent while Nifty Consumer Durables was up 0.74 per cent. Nifty Oil & Gas was up 0.68 per cent. Nifty Financial Services was up 0.74 per cent.
Broader indices
Broader indices were also in the green.
Nifty Midcap 50 was up 0.15 per cent while Nifty Smallcap 50 was up 0.61 per cent. The S&P BSE Midcap was up 0.74 per cent while the S&P BSE Smallcap was up 0.87 per cent.
The volatility index, however rose 4.52 per cent to 13.92, cautioning investors.
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