Sensex, Nifty end at record highs; investors richer by Rs 3.19 lakh crore

Tracking global cues domestic benchmark equity indices opened with a gap up and continued their upward trajectory as fresh buying was seen in index heavyweights and realty counters taking both indices to fresh record highs. Sensex skyrocketed over 1,000 points to hit an all-time high level of 59,957, however, settled a tad lower from its all-time high at 59,885 surging 958 points or 1.63%. Likewise, the Nifty 50 claimed a record peak of 17,843, up over 297 points and closed 276 points or 1.57% higher at 17,822.

Today’s rally added Rs 3.19 lakh crore to investor’s kitty as the market capitalization of all BSE listed companies touched an all-time high of Rs 2,61,76,366.06 crore.

“The market took the US Fed statement of starting tapering as soon as November in its stride. Encouraging news on the Evergrande crisis also helped to clear some uncertainty on the global front. Indian markets have been on a roll & the rally today was symbolic of the prevailing strong sentiment locally on the back of reduction in covid cases & the strong vaccination numbers,” said Devang Mehta, Head – Equity Advisory, Centrum Broking.

Improvement in economic activity & the optimism around the capex cycle revival, the earnings trajectory for India Inc will naturally get a big boost. Most of the companies which are market leaders in their respective domains have seen operating efficiencies & productivity improve & also been able to reduce debt with prominent gain in market share as well. Liquidity remains extremely strong, be it Foreign portfolio investors, Local mutual funds, Insurance companies, Family offices, HNI’s or even the retail investors, Mehta added.

Gainers & losers

Top gainers & losers on the Sensex.

Sectoral strand

Barring Nifty Media (down 1.71%), all other sectoral indices ended with gains on the NSE. Nifty Realty index saw the tallest gains of 8.66% among the sectoral indices. While Nifty Financial Services, Nifty Bank and Nifty Private Bank rallied over 2%. On the other hand Nifty Metal, Nifty PSU Bank and Nifty IT indices advanced over a per cent. While Nifty Auto index was up 0.86% whereas Nifty Pharma and Nifty FMCG indices ended with marginal gains of 0.32% and 0.10%, respectively.

The volatility index India VIX also spiked by 0.66% to 16..60 levels.

Broader markets

The broader markets too participated in today’s rally, however, they underperformed benchmark indices. The BSE MidCap index settled at 25,489 up by 323 points or 1.28% after hitting a fresh record high of 25,522. Whereas BSE SmallCap closed higher by 252 points or 0.91% at 28,108.

Bulls had an upper hand in today’s session as 1,974 shares advanced compared to 1,266 declined and 163 remained unchanged.

Economy

India has attracted Foreign Direct Investment (FDI) inflow of $27.37 billion during first four months of this financial year which is 62% higher as compared to corresponding period last financial year.

Commerce and Industry Ministry said the measures taken by the government on the fronts of FDI policy reforms, investment facilitation and ease of doing business have resulted in increased FDI inflows into the country. The Ministry said FDI equity inflow also grew by 112% in the first four months of this financial year compared to same period last year.

Automobile Industry’ has emerged as the top sector with 23% share of the total FDI equity inflow followed by computer software and hardware with 18% and services sector at 10%.

Global markets

European stocks rallied across the board while most Asian stocks advanced on Thursday as global markets reacted to the latest statements from the U.S. Federal Reserve in which it said it was not ready to taper monetary stimulus yet.

Investors continue monitoring the situation surrounding China Evergrande Group. As per reports, China Evergrande Group’s chairman said the firm’s top priority is to help wealth investors redeem their products, though questions remain over whether the embattled Chinese developer will pay the interest due on a dollar-denominated bond on Thursday.