Market indices closed at fresh highs on Monday after hitting record levels at the opening bell amid positive global equities. Backed by heavy buying in PSU banking and metal, Sensex ended 154 points higher at 46,253 and Nifty gained by 44 points to 13,558. Earlier today, Sensex hit an all-time high of 46,373 and Nifty too logged a lifetime high of 13,597.
Global equities were mixed today as concerns over slow progress on fiscal stimulus overshadowed positive reactions on the approval of Pfizer's Covid-19 vaccine in the US. Last Friday, Sensex ended 139 points higher at 46,009 and Nifty closed 35 points to 13,513. During last week, Sensex and Nifty have gained 2.26% and 1.93%, respectively.
ONGC followed by Tata Steel, L&T, Sun Pharma, M&M, ICICI Bank and NTPC were among the top gainers on Sensex. On the other hand, Tech Mahindra, HDFC Bank and Reliance Industries were among the laggards. Barring realty and auto sectors, all indices closed in bullish territory, with over 2% gain in media, 1.7% rise in PSU Bank and 1.3% rise in metal stocks.
Ajit Mishra, VP - Research, Religare Broking said, "Markets managed to end marginally in the green amid consolidation bias. The benchmark opened on a positive note, tracking supportive global cues and also in reaction to better than expected IIP data."
On the domestic economic front, India's industrial output grew at the fastest pace in eight months in October 2020 at 3.6%, with consumer durables production surpassing levels last seen prior to the COVID-19 pandemic, as per quick estimates from the National Statistical Office (NSO) released on Friday.
Rohit Singre, Senior Technical Analyst at LKP Securities said, "Index closed the day at 13558 with gains of 44 points and formed a doji candle for third consecutive session hinting indecision in the markets. Nifty has formed a good base near 13500-13440 zone holding above said levels we may see bullish momentum to continue towards immediate hurdle zone of 13600-13650 zone, below 13400 zone we may see some immediate trend reversal. Nifty bank closed a day at 30746 with gains of half a percent, support for a Nifty bank is coming near 30500-30200 zone and resistance is coming near 31000-31200 zone."
Keshav Lahoti-Associate Equity Analyst, Angel Broking said," Indian market made a fresh record high by closing up by 0.3% due to positive global cues based on optimism of the faster economic recovery due to positive development on the vaccines front. Global cues were positive: Dow Futures, Nasdaq Futures and FTSE were up by 0.7%, 0.4% and 0.3% respectively. We believe the sharp rally which the market has experienced in the last few months is behind us. Going forward, the market will move based on new news flow around economic recovery and development on the vaccine front."
Asian markets were trading mixed today. Investors were optimistic to the approval of vaccine made by Pfizer and after a survey showed the mood among hard-hit Japanese businesses had improved in the December quarter. The Centers for Disease Control and Prevention (CDC) Director Robert Redfield has signed off on Pfizer's Covid-19 vaccine, allowing inoculations to officially move forward for people ages 16 or older in the US. That came following the USFDA emergency authorization of Pfizer's vaccine.
Although, gains were muted amid bearish closing on Friday as prospects of financial aid getting passed by Congress faded along with a surge in coronavirus.
European markets closed higher today as investors monitored Brexit negotiations.
Ashis Biswas, Head of Technical Research, CapitalVia Global Research Ltd.- Investment Advisor said,"Equity market opened strong with a rupee appreciation supported by foreign portfolio inflows. Majorly all the sector indices were in green barring auto and reality on positive global cues. European markets were up as the trade deals will be extended between UK and European nations. Although the markets are running on a positive note, we believe that the sight must not be lost to monitor the patch of resistance. Traders can utilize dips to accumulate long positions. Markets reacted positively to the news of WPI raise to 1.55% because this was in response to the rise in manufacturing in the festive season."
He added," The lackluster movement in the market and an attempt to break the resistance level around the Nifty 50 Index level of 13580. The short-term technical condition of the market appears like a sideways correction in the process. Sustaining above 13400 levels, we expect the market to gain momentum, which could lead to an upside projection till the 13730 level. The momentum indicators like RSI, MACD to show divergence, indicating a likelihood of further consolidation around the current market level."
On the currency front, the Indian rupee settled 9 paise higher at 73.55 per US dollar on Monday, supported by continued foreign portfolio inflows and heavy buying in domestic equities.