Sensex closes above 51,000-mark, Nifty breaches 15,100

By: |
February 9, 2021 1:30 AM

The Nifty rallied 191.55 points (1.28%) to close at 15,115.8 and Sensex soared 617.14 points (1.22%) to 51,348.7. The market rally was supported by strong global cues on account of the progress in fiscal stimulus talks in the US. Continued buying by foreign portfolio investors (FPIs) also helped the markets rally.

sensexAccording to a report by Motilal Oswal, about 50% of the Nifty constituents in January traded at a premium to their historical averages.

Stocks rose for the sixth straight session to close at fresh record highs on Monday, as continuing optimism from the Budget and strong corporate earnings drove broad-based gains. The Sensex closed above 51,000 points for the first time while the Nifty smashed past the 15,100-mark.

The Nifty rallied 191.55 points (1.28%) to close at 15,115.8 and Sensex soared 617.14 points (1.22%) to 51,348.7. The market rally was supported by strong global cues on account of the progress in fiscal stimulus talks in the US. Continued buying by foreign portfolio investors (FPIs) also helped the markets rally.

Automobiles, metals and infrastructure stocks contributed the most to the rise on Monday. Auto stocks rallied the most after results reported by Mahindra and Mahindra (up by 7.39%) last week. Stocks belonged to the broader indices also gained. The Nifty Midcap100 and the Nifty Smallcap100 rose by 1.51% and 1.14%, respectively.

Positive global cues fuelled the rally on Monday. The benchmark in Japan touched three-decade high after rising by 2.12% while the bourses in Taiwan and China were up by 0.6% and 1%. Shares in Germany, France and the UK rose between 0.3% and 1.11%. Deepak Jasani, head – retail research, HDFC Securities, said: “Hopes that US lawmakers would pass President Joe Biden’s huge stimulus package and falling coronavirus infection rates and vaccine rollouts also helped sentiments.”

According to a report by Motilal Oswal, about 50% of the Nifty constituents in January traded at a premium to their historical averages.

The RBI’s announcement to buy bonds worth Rs 20,000 crore through open market operations helped the sentiment. Foreign portfolio investors have resumed buying in Indian equities. Since the Budget, FPIs have poured in $2.2 billion in equities.

Kotak Institutional Equities said, “We are hopeful about a multi-year investment cycle in India. Low bond yields are the key peg for the high valuations of Indian markets. The market performance would depend on the interplay between potential increase in earnings and likely increase in bond yields.”

The major gainers on the Nifty were M&M, Tata Motors, Hindalco, Shree Cement, and Bajaj Finserv, up by 7.39%, 6.54%, 6.3%, 4.59% and 3.56%. Significant losers were Britannia Industries, Hindustan Unilever, KMB, Divi’s Laboratories and Bajaj Finance, down by 1.83%, 1.43%, 1.39%, 1% and 0.77%.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Stocks in focus: Nureca, Max Life Insurance, Axis Bank, Bharti Airtel Vodafone idea, Affle India
2Share Market LIVE: Sensex, Nifty set to open strong; Nureca shares to list on stock exchanges today
3Bonds sell-off: RBI governor asks markets for trust