Market indices closed at record highs on Friday in line with positive global equities. Gaining for a fifth straight day post the Union Budget and RBI MPC policy outcome, Sensex ended 117 points higher at 50,723 and Nifty gained 28 points to 14,924. Both benchmarks hit fresh lifetime highs of 51,073 and 15,014 earlier today.
Yesterday, Sensex ended 358 points higher at 50,614 and Nifty gained 105 points to 14,895.
Sensex and Nifty continued hitting new all-time highs in each session this week as investors were enthused by a Budget aimed at economic recovery amid Covid -19 crisis. During the week, Sensex rose 4,445 points or 9.6% and Nifty gained 1,293 points or 9.49%.
After Union Budget 2021, markets were enthused by the RBI Monetary Policy Committee (MPC) outcome of keeping the repo rate unchanged at 4% on February 5.
The NSE's India VIX, a gauge of market's expectation of volatility over the near term, rose 1.96% to 23.5775. Gains in PSU Banking, pharma and metal sectors were capped by losses in auto, IT, media and private banking.
Ashis Biswas, Head of Research at CapitalVia Global Research said,"The market witnessed a lacklustre movement after testing the resistance level around the Nifty 50 Index level of 15000. While It is subject to further price action confirmation, A decisive breakout above the 15000 levels would lead to a rally till the levels of 15230-15250. Expected14730-14750 level to act as a support zone from the short-term perspective. the momentum indicators like RSI, MACD indicating the market's momentum to continue further."
On markets closing --Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said, "The markets have closed well in the green with supporting volumes. 15000 has proved to be a psychological resistance but that should not deter the thought process on the trend. We continue to remain bullish and the Nifty has the wings to achieve 15200. A buy on dips strategy would be advisable. There is ample scope for the markets to correct during intraday sessions. These dips can be utilised to make fresh long positions for higher targets. This way the risk-reward trade-off would be favourable."
Keshav Lahoti-Associate Equity Analyst, Angel Broking said,"Indian shares opened on an upbeat note on Friday, tracking positive global cues and ahead of the RBI's monetary policy outcome. By the end of the day Nifty closed marginally on a positive note. Nifty Midcap 100 corrected by 1.1%.
He added," Global cues were supportive: Dow Futures and Nasdaq futures were up by 0.4% each, whereas FTSE was flat. We expect the market to continue with its bull run to hit fresh high, although we expect some correction after each rally. We advise investors to use correction in the market as an opportunity to buy."
Most Asian stocks rose, extending a global rally amid a slew of corporate earnings. Overnight, U.S. markets saw the S&P 500 and Nasdaq posted record closing highs as investors were encouraged by news on the pace of vaccinations in the US, the prospect of more financial aid from Congress, and a decline in the frenzy of retail trading in heavily shorted stocks. On the stimulus front, Democrats are moving forward with President Joe Biden's $1.9 trillion Covid-19 relief proposal.
Meanwhile, the dollar headed for its best weekly gain in three months on Friday, hitting 91.60 for the first time since Dec. 1.
European shares also opened in the green today for the fifth straight day as investors were hopeful of a swifter global economic recovery and assessed a new batch of corporate earnings amid solid economic data.
On the currency market, Indian Rupee gained 3 paise to settle at 72.93 against US dollar on Friday.
In the IPO market, shares of Stove Kraft listed at a premium of 21% on BSE on Friday. The share opened at Rs 467 on BSE against issue price of Rs 385. Intraday, the share rose 28.71% to Rs 495.55 on BSE.