Stocks kicked off the new year on a record note with both the key indices closing at lifetime highs following strong buying in IT, auto and FMCG counters. While the broader Nifty closed above the 14000-mark for the first time, the 30-share Sensex is inching towards 48000 as it finished with gains of 117.65 points, or 0.25 per cent, at a new peak of 47868.98.
The good start to the year came on encouraging news of GST collections touching a record high of over Rs 1.15 lakh crore in December, reflecting festive demand and an expanding economy.
Expectations are also building up on the upcoming budget with the ruling BJP reportedly asking the government to give more relief to the middle class, even as investors remain optimistic that the interest shown by foreign portfolio investors (FPIs) in 2020 will continue this year as well. FPIs bought equities worth Rs 1.70 lakh crore last calendar year of which Rs 62,000 crore came in December.
Moreover, expectations are also positive ahead of the results season that will start next week. While TCS will declare its third-quarter results on January 8, the country’s second-largest IT services firm Infosys will report its numbers on January 13.
In Friday’s trade, TCS rose 2.02 per cent after the firm said its board will also consider a proposal for declaring the third interim dividend to shareholders at its meeting next Friday.
The prevailing mood is that despite the third-quarter being a seasonally weak period for IT companies, they will report better-than-expected numbers.
“In spite of lesser participation from FIIs, the Nifty 50 gave a strong closing on the monthly expiry day. The robust FII flows of $7.3 billion in December and strong closing on expiry indicates bullish rollovers for January expiry,” Rusmik Oza, executive vice-president, head of fundamental research at Kotak Securities, said.
Antony Waste listing
Shares of Antony Waste Handling Cell on Friday made a remarkable market debut, and closed with a premium of nearly 30 per cent against its issue price of Rs 315. The stock listed at Rs 430, a gain of 36.50 per cent from the issue price on the BSE.
