Benchmark indices were back to setting new records after a week of consolidation as the Sensex on Monday rallied 610 points to close above the 52000-mark and the Nifty ended above 15300 following positive global cues and optimism of an economic revival back home.
Banking and finance stocks led the rally with the Nifty Bank index rising 3.32 per cent to 37306.25, taking its rally to 23 per cent so far this month. Investments from foreign portfolio investors (FPIs) also remained strong with net investments of over Rs 1,200 crore in Monday’s trade.
The 30-share Sensex began on a higher ground at 51907.75 and breached the 52000-mark to touch a record intra-day high of 52235.97. It later ended ended 609.83 points, or 1.18 per cent, higher at a new closing peak of 52154.13.
The broader NSE Nifty also soared 151.40 points, or 1 per cent, to finish at a new high of 15314.70. It had touched an intra-day peak of 1540.15.
“Global cues were positive on optimism about the rollout of Covid-19 vaccines and new US fiscal aid. On the domestic side, strong corporate earnings have ignited hopes of a faster economic recovery. Better-than-expected December IIP and January CPI numbers boosted market sentiment,’’ Siddhartha Khemka, head of retail research, Motilal Oswal Financial Services, said.
Industrial production recorded a positive growth of 1 per cent in December, while retail inflation cooled to a 16-month low of 4.06 per cent in January, according to data released after market hours on Friday.
In the Sensex pack, Axis Bank led the gainers list, climbing 5.88 per cent, followed by ICICI Bank, Bajaj Finance, SBI, IndusInd Bank, HDFC, Bajaj Finserv and HDFC Bank. However, Dr Reddy’s, TCS, Tech Mahindra, HUL, Asian Paints and Titan were among the laggards, sliding up to 1.77 per cent.
Sector-wise, BSE bankex, finance, realty, industrials, telecom and healthcare indices rallied up to 3.31 per cent.
“The Nifty keeps rising with up-gaps, reflecting pent up buying partly driven by encouraging third-quarter numbers. However, selective buying in sectors means that the overall volumes are measured. The next resistance for the Nifty is 15470 while 15243 could provide support,” said Deepak Jasani, head of retail research, HDFC Securities.
In Asia, bourses in China and Hong Kong were closed for the Lunar New Year holidays, while Tokyo and Seoul ended with strong gains. Stock exchanges in Europe were also trading in a positive territory in mid-session deals on optimism over the Covid vaccination and the proposed $1.9-trillion stimulus in the US.
The global oil benchmark Brent crude was trading 1.30 per cent higher at $63.24 per barrel. The rupee gained 7 paise to settle at 72.68 against the dollar.
