The gains in the domestic market today were witnessed by the broader market as well with BSE Midcap gaining 0.81% and BSE Smallcap gaining 0.93%.
The benchmark indices touched record highs on Monday, following the rise in Asian stocks and no fresh news of escalation in the oil belt in West Asia.
Brent crude on Monday was trading at $64.90 per barrel, down from the $70 per bbl it touched last week. The benchmark Sensex rose by 259.97 points to close at 41,859.87 points. Broader Nifty50 gained 0.62% to end the day at 12,329.55 points.
The biggest gainer on the Sensex was Infosys followed by IndusInd Bank and Bharti Airtel. The shares of Infosys rose by 4.76% to close at Rs 773.40 a piece after the company announced results on Friday. The company reported a 23% year-on-year jump in profits.
On the other hand, Tata Consultancy Services (TCS) was the biggest loser on the Sensex. Experts suggest that TCS ended the day in the red because some investors shifted towards buying more Infosys stocks. Bajaj Auto, SBI India and ICICI bank were the biggest losers on the Sensex.
Explaining the rise in the market on Monday, Deepak Jasani, head – retail research at HDFC Securities, said, “Our rally is more due to the positive Asian markets, despite the US markets closing down. Asian markets are up ahead of the US China trade deal that will be signed on January 15.”
The bourses in Hong Kong, China, Korea and Taiwan were trading in the green, with the Shanghai Composite index rising by 0.75%. While explaining the domestic reasons for the rally, Siddhartha Khemka, head – retail research, Motilal Oswal said, “IIP came at 1.8% in November, after having contracted for three months in a row, surprising the market.”
Inflation shot through the roof in December, with the CPI coming in at 7.5% on higher food prices. Joseph Thomas, head of research – Emkay Wealth Management, said the CPI at 7.5% was past the RBI’s tolerance limit of 6%.
“While the RBI may not a hike the policy rates in the immediate future, it may not be able to cut the rates either,” he added. These factors could weigh on the markets on Tuesday.
Sectorally, BSE Realty gained the most followed by BSE Teck and BSE Information Technology.
The gains in the domestic market today were witnessed by the broader market as well with BSE Midcap gaining 0.81% and BSE Smallcap gaining 0.93%. The domestic markets traded in green for the third consecutive session.
Going ahead, experts added that the markets could expect some profit-booking closer to the Budget. The markets could also witness small rallies on the basis of company results.