The markets in France, the UK and Germany were up between 0.3% and 0.8% in early trade. The Asian markets closed higher, with the bourses in Taiwan, Hong Kong and South Korea rising between 0.2% and 2.02%.
The Sensex and Nifty zoomed to fresh peaks for seventh straight session on Wednesday, propelled by unabated foreign fund inflows and positive cues from global markets. The Nifty crossed the 13,500 mark for the first time ever – it rallied by 136.15 points (1.02%) to close at 13,529.1. The Sensex jumps 494.99 points (1.09%) to close at 64,103.5. So far in December, the BSE has added market capitalization of nearly Rs 9 lakh crore.
On Tuesday, foreign portfolio investors bought stocks worth $387.9 million, provisional data on the exchanges show. So far in December, FPIs have bought stocks worth $2.3 billion. This is mainly because of the higher allocation to Indian equities in the MSCI index and bullishness of FPIs towards the emerging markets.
Sell-side analysts have said the market has become more broad-based and valuations continue to be expensive. Even as the normalisation of economic activity continues, the second wave of Covid-19 continues to pose near-term challenges ever with hopes on the vaccine front.
“Market valuations continue to turn expensive. Market cap to GDP has shot up to 95% due to a mix of better market performance and falling nominal trailing GDP. Valuation on price to book is reasonable,” said ICICI Securities in its report.
Global cues were positive owing to the developments around the Covid-19 vaccine and expectation of more fiscal stimulus in the US. Sanjeev Hota, head of research, Sharekhan by BNP Paribas, said, “The market is getting its strength from global liquidity and positive news flow on the vaccine front, coupled with improving macro numbers.”
The markets in France, the UK and Germany were up between 0.3% and 0.8% in early trade. The Asian markets closed higher, with the bourses in Taiwan, Hong Kong and South Korea rising between 0.2% and 2.02%. The futures and options segment saw a turnover worth Rs 26.16 lakh crore and the cash market witnessed a turnover of Rs 62,703 crore. These were against the six-month average of Rs 59,316 crore in the cash market and Rs 21.7 lakh crore in the futures and options segment.