Markets extend record run to fourth straight session; what should you do on Wednesday?

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Domestic benchmark  share indices closed at record highs on Tuesday, continuing its winning run for the fourth consecutive session. This was despite the markets starting yesterday’s session on a weak note amid muted global cues. The session was marred by a whole lot of volatility with the indices shifting between gains and losses throughout. Last hour buying led benchmarks to clock in record closing highs.

Gains were led by defensive sectors like IT, Pharma and FMCG.

The Sensex closed at 55,792.27, up 209.69 points or 0.38%, while the Nifty was at 16,614.60, up 51.55 points or 0.31%. Metals, banks closed in red, while IT, pharma, and FMCG were top gainers. S&P BSE Information Technology was the biggest sectoral gainer, up 2.18%

Tata Consumer, Sun Pharma, Power Grid and Cipla were among other blue-chip top performers. On the other hand, HDFC Bank was the top laggard, down 1.07 per cent. ICICI Bank, Maruti, Tata Motors and Eicher Motor were among other losers.

Vinod Nair, Head of Research at Geojit Financial Services said, “Domestic indices swung between gains and losses in a volatile session amidst weakened global markets. Due to concerns over the rising global infection rate and tighter government regulations for the Chinese internet sector, global markets continued to fan investor worries. However, backed by solid support from defensive sectors like IT, FMCG and Pharma, frontline indices gained ground to end the day on a flat trend. ”

At the interbank foreign exchange market, the domestic currency opened flat at 74.23 against the American currency but later slipped to close at 74.35.

Here’s how experts see markets trading on Wednesday

Ashis Biswas, Head of Technical Research at CapitalVia Global Research