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Sensex, Nifty touch new highs

Dubai - The market could continue with its positive momentum given optimism over Covid-19 vaccines rollout.

Indian equity benchmarks Sensex and NSE’s Nifty both displayed a bullish peak crossing 52K and 15K mark respectively on Monday. Sensex rallied over 610 points tracking significant gains in financial stocks amid a positive trend in global markets.

After touching a record high of 52,235.97 during the day, the 30-share BSE index ended 609.83 points or 1.18 per cent up at 52,154.13. Similarly, the broader NSE Nifty soared 151.40 points or one per cent to finish at a record high of 15,314.70. It touched an intra-day peak of 15,340.15.

Axis Bank was the top gainer in the Sensex pack, climbing around six per cent, followed by ICICI Bank, Bajaj Finance, SBI, IndusInd Bank, HDFC and Kotak Bank. On the other hand, Dr Reddy’s TCS, Tech Mahindra, HUL and Asian Paints were among the laggards.

Siddhartha Khemka, head-retail research, Motilal Oswal Financial Services, said: “Indian equity benchmarks after a week of consolidation, clocked yet another session of record highs on the back of strong December quarter earnings. Strong corporate earnings have ignited hopes of faster economic recovery while buoyant global markets also aided risk sentiment. Going ahead, the market could continue with its positive momentum given optimism over Covid-19 vaccines rollout, quicker economic recovery and hopes for further US fiscal stimulus. With earnings season largely over and no major event ahead, global cues will largely dictate the short term market trend.”

During the afternoon session, markets continued to trade higher as CPI data released during the weekend added to the positive sentiments. Retail inflation during the month of December 2020 was at 4.59 per cent, the second consecutive month the CPI data has come within the Reserve Bank of India’s upper margin of six per cent.

“From a close of 48,600.61 for BSE Sensex and 14,281.20 for Nifty on February 1, 2021 to close at 52,154.13 and 15,314.70, Indian markets have posted gains of over 3,500 points for Sensex and over 1,000 points for NSE Nifty, these gains of over seven per cent in a span of just two weeks or 10 trading sessions post budget announcement is a clear testimony of India’s growth trajectory and the way forward,” said Dhaval Jasani, founder and CEO at ZTI.

“The growth oriented budget unveiled by Nirmala Sitharaman, Finance Minister of India has propelled the markets forward. Government’s commitment to fund projects, not to raise taxes and instead opt to increase fiscal deficit to fund these projects provided the required confidence to the Indian Investors and FII’s.

— sandhya@khaleejtimes.com