BSE Sensex and Nifty 50 once again settled at record closing highs on Friday, rising nearly 1.5 per cent.
Market participants will keep tabs on corporate earnings, COVID-19 vaccine rollout, foreign fund inflow, macroeconomic data and other global cues.
BSE Sensex and Nifty 50 once again settled at record closing highs on Friday, rising nearly 1.5 per cent. BSE Sensex ended 689 points, or 1.43 per cent higher to end at the fresh closing peak of 48,782.5. Nifty 50 index also settled at fresh closing peak of 14,347, closing 210 points or 1.48 per cent higher. During intraday Sensex hit a new lifetime high of 48,854.34, while Nifty touched a lifetime high of 14,367 points. Ahead of October-December quarter earnings, Tata Consultancy Services (TCS) shares hit a record high of Rs 3,127.55 apiece in the intra-day deals. The trend in Nifty sectoral indices was largely positive. Barring Nifty Metal and Nifty PSU Bank indices, all the sectoral indices ended in the green. Nifty IT was the top gainer, which hit a 52-week high of 26,227.50 points.
“The rally led by IT and auto stocks guided the domestic market to discover new highs which was due to improved quarterly outlook. The expectations of TCS quarterly result which is to be released later in the day helped in cheering investors’ mood. Support from strong global indices also helped in raising domestic market sentiments. The official certification of Biden’s presidency by the US Congress and easing of the political unrest as Trump promised a smooth transition of power, have created an upbeat movement in the western market. The focus of Indian markets has shifted to third quarter earnings, forward ignoring high valuations.”
“IT & Auto stocks pulled their weight today ahead of TCS earnings as bulls went berserk, lifting Indices by 1.5% buoyed by positive global cues. An array of high quality midcaps across sectors registered smart gains as mood remained buoyant through the day.”
Joseph Thomas, Head of Research – Emkay Wealth Management
“The equity market witnessed a broad-based rally, for the most part of the week, across segments and sectors. The rally has been possible due to the enhanced prospects of stronger economic rebound, the higher probability of better earnings from the third quarter, and also the prospects of covering a large segment of the population with the new vaccine etc. One of the factors that added to the positive bias has been the clarity on the new administration taking over in the US by January 20, the path for which has been now cleared by the US Congress. The market draws its strength from the relatively better economic fundamentals, resulting from the easy liquidity conditions and the accommodative stance of fiscal and monetary policy. Any challenges to the sustainability of the economic rebound would pose a problem for the markets.”