Sensex scales Mt 60k, Nifty ends above 17,850; IT stocks lead

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Indian equity benchmarks scaled historic peaks on Friday with Sensex closing above the 60,000-make for the first time, shrugging off weakness in Asian peers.

After hitting a lifetime high of 60,333 during the day, the 30-share BSE index closed 163.11 points or 0.27% higher at record 60,048.47. Likewise, the NSE Nifty advanced 30.25 points or 0.17% to record closing of 17,853.20.

“Crossing the 60k mark is another milestone for the market. We could see many more positive surprises from the market in the next one-two years, as we are entering into a positive upcycle of earnings trajectory. The overall market trajectory continues to be positive, and dips should be utilized to build long-term positions in quality companies for more sustainable returns. A quality theme is back in focus, and we continue to see the broader market doing well, as the visibility on broad-based earnings is still intact. A fully functional economy over the upcoming festival season and the sustenance of earnings momentum in Q2 FY22 are the near-term triggers for the market,” said Naveen Kulkarni, Chief Investment Officer of Axis Securities.

Gainers & losers

Sectoral strand

Sectorally, the Nifty Realty index stood taller as it rallied 1.5% followed by the Nifty IT index gaining 0.78%. Nifty Auto and Nifty Bank indices were up 0.54% and 0.16% respectively.

On the downside, the Nifty Metal index lost the most as it declined 2.10% and the Nifty FMCG index slipped 1.10%. While Nifty Pharma & Nifty Media indices were down 0.64% each.

Broader markets

Unlike benchmark indices, some pain was visible in the broader markets as the BSE MidCap index declined 294 points or 1.16% to 25,194 after hitting a fresh high of 25,650 earlier in the day. Even the BSE SmallCap index lost 85 points or 0.30% and settled at 28,023.

The market breadth turned negative on profit booking as 1,937 shares declined compared to 1,330 advancing and 155 remained unchanged.

Global markets

European stocks declined across the board on Friday, 24 September 2021 as investors reacted to central bank policy decisions and monitor developments surrounding China Evergrande Group. However, the European Central Bank President Christine Lagarde told the media houses that she believes Europe’s direct exposure to the embattled Chinese property company Evergrande would be “limited.”

Meanwhile, the Bank of England on Thursday reportedly maintained its stimulus amount and record-low interest rate, even as it warned that UK annual inflation would top four percent this year. The BoE ‘s nine-strong monetary policy committee (MPC) voted unanimously to hold its key borrowing cost at 0.1%, a statement said.

Policymakers reportedly voted 7-2 in favour of keeping its so-called quantitative easing stimulus at almost £900 billion ($1.2 trillion, 1.0 trillion euros).

Asian stocks mostly edged lower on Friday. Investors breathed a sigh of relief as concerns over China Evergrande’s debt woes receded somewhat. It, however, remains unclear if and how the developer will pay the more than $300 billion of liabilities that it owes.