Equity benchmarks closed at fresh record highs on Wednesday tracking positive trend from global equities on hopes of fresh US stimulus measures. Rising for the second straight session, Sensex ended 393 points higher at 49,792 and Nifty gained 123 points to 14,644. Sensex and Nifty today touched new lifetime highs of 49,874 and 14,666.
Earlier on January 13, Sensex and Nifty hit fresh lifetime highs of 49,795 and 14,653, respectively. Yesterday, Sensex added 834 points to reach 49,398 and Nifty gained 239 points to 14,521.
IT stocks also advanced in morning trade on hopes of fresh US stimulus measures with HCL Tech, Tech Mahindra, TCS and Infosys rising around 1% each. Other index majors like ONGC, Reliance, Maruti, SBI, HDFC, M&M rose 2% in the afternoon session.
Further, December quarter earnings announcements by Bajaj Finance, Bajaj Finserv, HDFC Asset Management Company, Federal Bank, Hindustan Zinc, Havells also kept sentiments buoyed today.
Sectorally, except FMCG, all the other indices closed in the green territory today, with almost 2.2% rise in auto and IT index and 2% gain in PSU Bank, followed by 1% rise in media index.
Overseas, Asian markets hit record highs today, reacting to comments from US Treasury Secretary nominee Janet Yellen, who called for a hefty fiscal relief package to help the economy hit by the COVID-19 crisis. Investors were also enthused with the US President-elect Joe Biden taking office today. Moreover, markets were also optimistic after China kept the benchmark lending rate unchanged.
European and US markets also opened mostly higher, ahead of President-elect Joe Biden's inauguration to the oval office on Wednesday. Sentiments were buoyed as the democrat has laid out a $1.9 trillion stimulus package proposal to boost the economy.
With Sensex heading for a key psychological mark of 50,000, analysts also expect the market to turn highly volatile. Besides, high valuations, partial profit booking can be considered, especially ahead of the budget 2021.
On Nifty's technical view, Rohit Singre, Senior Technical Analyst at LKP Securities said, "One more positive session along with that index made fresh levels today and closed a day at 14645 with gains of nearly one per cent formed bullish candle for the second consecutive day. Now the good base is created is around 14560 followed 14500 zone holding above said levels index can show some more positive move towards 14700-14750 zone also any dip near 14500 zone will be again buying opportunity. In nifty bank strong hurdle is still at 32700 zone any decisive break above 32700 zone can quickly push the index to 33k zone."
S Ranganathan, Head of Research at LKP Securities said,"On a day when Joe Biden assumes office, the Bulls of Dalal Street held the Indices high, inching a step closer to the 50K mark buoyed by RIL and well supported by Auto & IT. The broader markets witnessed buying into Tyre stocks and PSU banks."
Ajit Mishra, VP - Research, Religare Broking said,"The recent buoyancy on the global front combined with the supportive local cues are helping the index to regain momentum. However, volatility is still high on the stock-specific front. Keeping all in mind, we feel it's prudent to continue hedged positions and prefer index majors over the others."
On the currency front, Indian rupee gained for the second session and closed 12 paise higher at 73.05 per dollar.
Kshitij Purohit, Product Manager, Currency & Commodities at CapitalVia Global Research said, "All Asian Indices trading in green since strong China's GDP data and sustained inflow of dollar helped emerging market to perform well. Support for Rupee spot is at 73.05-72.90 levels for the spot pair. Resistance for the pair is 73.31. USDINR Jan future will trade in the range of 73.10-73.40 levels."