Benchmark indices Sensex and Nifty ended the session at record highs on Tuesday, backed by positive global cues, progress in Covid 19 vaccine, strong FIIs inflows and signs of economic recovery. Sensex ended 181 points higher at 45,608, Nifty closed 37 points higher at 13,392. Intraday, both indices touched all time highs today, with Sensex hitting 45,742 and Nifty touching 13,435 for the very first time.
With today's rally, Sensex has gained 10.56% since the beginning of this year and Nifty has risen 10.06% during the same period. Sensex and Nifty have gained 8.87% and 9.21%, respectively in one month. Yesterday, both the indices attained record closing high levels. Sensex closed at a record of 45,426, rising 347 points and Nifty ended 97 points higher at 13,355.
UltraTech Cement, followed by TCS, Reliance Industries, HCL Tech, Infosys and Kotak Bank, SBI were among the top gainers on Sensex. On the other hand, Sun Pharma, IndusInd Bank, NTPC, Tech Mahindra, ONGC and Asian Paints were among the laggards. Sectorally, financials, PSU banks, IT and realty indices carried the bullish momentum in the market today, while profit bookings were seen in pharma, metal, FMCG, auto and media stocks.Strong FII inflows in November and December have turned sentiment positive toward the Indian benchmark indices. In December alone, FIIs infused Rs 13,998 crore in first five sessions. In November, FIIs brought a record Rs 65,317 crore into Indian markets.
Overseas, Asian stocks were trading mixed as investors remained cautious over rising coronavirus cases, U.S. stimulus negotiations as well as Brexit talks between the U.K. and the European Union.
In US, the Dow Jones Industrial Average and S&P 500 fell on Monday as traders worried about rising coronavirus cases and searched for cues on additional fiscal aid. The Nasdaq Composite, meanwhile, rose 0.5% to 12,519.95 and hit a fresh record high.
European indices traded lower as markets remained focused on efforts made to reach a Brexit trade deal between U.K. and EU.
Vinod Nair, Head of Research at Geojit Financial said,"Since November, PSU banks have been outperforming the market and this rally continued and took Indian benchmark indices to new highs in today's volatile session. Reports of emergency vaccine rollout in India and hopes of a stimulus package in the US and Japan has also helped in keeping momentum live. European stocks are experiencing negative waves due to fading hopes of Brexit trade talks and an increasing number of covid cases. Although the markets are at an all-time high, the expected updates on vaccine rollouts and stimulus packages have the potential to take markets further"
Meanwhile, Japan will compile a fresh economic stimulus package worth 73.6 trillion yen ($708 billion), Prime Minister Yoshihide Suga said on Tuesday, signalling his resolve to pull the country out of its coronavirus crisis-induced slump.
In the currency market, the rupee surged by 30 paise to settle at 73.60 against the US dollar, buoyed by foreign fund inflows and heavy buying in domestic equities.
On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said,"The markets have closed within the resistance passage of 13400-13700. There is always a possibility of turning around from these levels and correcting. The overall trend continues to remain positive, but traders should exercise caution at these levels of the Nifty. Strict stop losses should be maintained for all long trades.
"We feel markets have priced in all the positives (vaccine updates, high FII flows, etc) and now the upcoming domestic macroeconomic data viz. IIP, CPI and WPI would be critical for further directional move. Having said that, we reiterate our view to continue with the trend and avoid contrarian trades," said Ajit Mishra, VP - Research, Religare Broking.
Sameet Chavan (Chief Analyst-Technical and Derivatives, Angel Broking) said," Market continues its dream run and it's one of such rarest phases when it just refuses to fall and keeps giving the gravity defying move. As we have been mentioning for a few days, although it's always a soothing factor for the market not correcting; but at the same time, there will always be a hanging sword of the market surprising with a sudden correction any time. Hence, to be on the safer side, we are advocating booking profits in the ongoing rally. As far as levels are concerned, 13450-13500 continues to be a key resistance zone; whereas on the lower side, crucial support base shifts at 13300-13250 now. A move below this support zone would result in an extended correction."