Sensex, Nifty scale new highs; IT, FMCG stocks rally

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Indian benchmark equity indices settled at fresh lifetime highs on Tuesday, amid weak global cues. After swinging between gains and losses, the BSE Sensex surged 209.69 points or 0.38% towards the fag-end of the trading session to settle at record 55,792.27. During the day, the 30-share index touched a fresh high of 55,854.88.

Likewise, the NSE Nifty advanced 51.55 points or 0.31% to end the day at record closing peak of 16,614.60. The 50-share index hit lifetime intraday high of 16,628.55.

“The rally in IT stocks kept bulls firmly in control despite a truncated week with several high-quality midcap names rallying in the expansionary phase over the last several months. Metal names though met with profit-taking in today’s trade. While worries over the deterioration in asset quality in private sector banks persist, the recent lull in the progress of the monsoon needs to be watched closely,” said S Ranganathan, Head of Research at LKP Securities.

Gainers & losers

Sectoral strand

On the sectoral front indices ended mixed. Nifty IT index led from the front and ended 2.5% higher, followed by the Nifty FMCG index advancing 1.40% and Nifty Pharma was up about 0.47%.

On the downside, the Nifty Metal index was the worst performer as it plunged 2.52% whereas the Nifty Realty index slipped over a per cent. Even Nifty Bank, Nifty Auto ended with losses of up to 0.59%.

Broader market

The broader market outperformed as benchmark indices scaled new highs. The BSE MidCap index regained the 23,000 mark and ended at 23,061 level gaining 0.71%. The rally in small cap stocks was a bit slower as the BSE SmallCap index rose .30% to settle at 26,284.

The market breadth remained negative as 2,035 shares declined compared to 1,135 advanced and 118 remained unchanged.

Global markets

Shares in Europe and Asia declined on Tuesday, 17 August 2021. The ongoing coronavirus pandemic and spread of the highly transmissible delta Covid-19 variant has rattled investors confidence. Oil prices erased earlier gains on Tuesday amid persistent worries about the outlook for global fuel demand.

Investors are also monitoring the potential geopolitical implications following the Taliban’s seizure of Kabul, the capital city of Afghanistan. U.S. President Joe Biden rejected blame for the scenes of turmoil and panic as thousands of people were seen at a Kabul airport desperately trying to flee.

Biden described the anguish of those trapped in the country as “gut-wrenching” and conceded the Taliban’s lightning offensive had occurred more quickly than expected. His comments came amid mounting criticism of his administration’s handling of the situation.

Investors continued to monitor the Covid-19 situation in Australia, with the country’s largest cities currently under lockdown.