Sensex, Nifty end at record highs; metals, IT and pharma stocks rally

Benchmark equity indices ended at record highs on June 11 as investor sentiment remained upbeat on hopes of a quick economic revival. A decline in Covid-19 cases and faster roll-out of vaccines further boosted the sentiment. After hitting an intraday high of 52,641, Sensex settled 174 points or 0.33% higher at 52,474. Similarly, Nifty advanced 61 points or 0.39% to end at a fresh record high of 15,799.

“Markets held firm in today’s trade despite a spate of new public issues being lined up this month. IT & Metals were in the limelight with select Pharma stocks lending support. Several Small Caps having rallied multiple times in CY2021, there was a sense of caution as investors resorted to profit-taking. The timely arrival of the Monsoon however kept the mood buoyant as several Midcaps were seen buzzing around,” said S Ranganathan, Head of Research at LKP Securities.

Gainers & losers 

Buzzing sectors

Nifty Metal index led the sectoral indices to pack with gains of 2.69%, followed by Nifty IT index advancing 1.51% while Nifty Pharma climbed 1.05% and Nifty Auto rose 0.40%.

On the downside, the Nifty Realty index lost over a per cent, whereas Nifty Bank & Nifty FMCG indices slipped 0.24% each.

Meanwhile, the volatility gauge India VIX of NSE, which measures how much volatility investors anticipate in the next 30 days, cooled off, ended 5.99% lower at 14.10 levels below the 15-mark.

Broader market

The broader market was very healthy and continued its uptrend with both BSE SmallCap & BSE MidCap indices hitting a fresh high. BSE SmallCap index ended at 22,927 up 0.14% after hitting a record high of 23,045. Likewise, the BSE MidCap index touched a new peak of 25,248 but ended at 25,116 gaining 0.40%.

The market breadth was positive as 1,043 shares advanced versus 910 stocks declining and 302 scrips were unchanged.

Global markets

European shares advanced while most Asian stocks were trading higher on Friday, 11 June 2021 following overnight gains on Wall Street.

Wall Street stocks ended higher on Thursday, with the S&P 500 closing above its prior record high set on 7 May 2021, as economic data appeared to support the Federal Reserve’s assertion that the current wave of heightened inflation will be temporary.

At the close of trade, the Dow Jones Industrial Average index advanced 19.10 points, or 0.06%, to 34,466. The S&P 500 index added 19.63 points, or 0.47%, at 4,239. The tech-heavy Nasdaq Composite Index rose 108.58 points, or 0.78%, to 14,020.

Consumer prices for May 2021 accelerated at their fastest pace since the summer of 2008 amid the economic recovery from the pandemic-triggered recession, the Labor Department reported Thursday. The US consumer price index rose 5% from a year ago.

The number of Americans applying for unemployment benefits fell for the sixth straight week as the U.S. economy reopens rapidly after being held back for months by the coronavirus pandemic. Jobless claims fell by 9,000 to 376,000 from 385,000 the week before, the Labor Department reported Thursday.