Domestic equity markets extended their Monday’s gain and opened strong on Tuesday morning, touching their fresh record highs. The BSE Sensex and NSE Nifty closed at record highs on Tuesday. Sensex zoomed 260.48 points to close at new peak of 30,582.60, while NSE Nifty ended above 9,500 level by setting 66.85 points up at 9,512.25. Tuesday is also the day when BJP sweeped the general elections and came in power.
On Monday, the markets scaled fresh closing highs at 30,322 and 9,445, respectively. Brokerage house Angel Broking on Monday’s movement said,”We are not surprised by such optimistic day as we had interpreted last two sessions’ weakness as a pullback move. The hourly chart looks extremely encouraging as the Nifty is now on its way up after precisely finding a support around the earlier breakout point of 9377. Going ahead, it would merely be a formality to hit new record highs. We continue with optimistic stance on the market and expect projected level of 9600 (target of ‘Bullish Flag’ pattern) quite soon. For the coming session, the support zone of 9400 – 9377 remains unchanged.”
Below are the 5 reasons why markets are on a high
1. Stock markets sentiments got a boost following early arrival of rains and forecast of normal monsoon this year, which is likely to give a booster dose to the rural economy.
2. Asian stocks briefly climbed to a fresh-two year high on Tuesday on the back of an overnight rise in Wall Street, while oil extended gains after major producers Saudi Arabia and Russia said supply cuts needed to continue into 2018.
3. Oil prices rose on Tuesday, extending gains after a joint announcement by top producers Saudi Arabia and Russia to push for an extension of supply cuts until the end of March 2018. Brent crude futures were at $52.05 per barrel at 0129 GMT, up 23 cents, or 0.44 percent, from their last close.
4. All the BSE sectoral indices led by technology, power, FMCG, IT, consumer durables and healthcare were in the positive terrain, with gains of up to 0.66 per cent. Tata Steel was on a bull run and added 0.82 per cent as investors widened their exposure ahead of its quarterly earnings due later in the day and on the government’s decision to impose anti-dumping duty on some steel products. Other major gainers that supported the key indices were Bharti Airtel (2.78 per cent), RIL (1.89 per cent), TCS (1.46 per cent), Dr Reddy’s (1.30 per cent), Tata Motors (1.17 per cent) and ITC (1.05 per cent).
5. Sentiment remained upbeat mostly on robust foreign fund inflows and a better-than-expected earnings report card by some blue-chip companies so far, besides overnight gains in Europe and the US markets.