Market indices continued hitting record highs for the third straight session and ended on a bullish note on Tuesday, amid mixed global equities. Sensex ended 247 points higher at 49,517 and Nifty gained 78 points to 14,563.
In today's session, Sensex and Nifty hit new lifetime highs of 49,479 and 14,563, respectively. Reliance Industries, L&T, Bharti Airtel, ITC, Bajaj Finserv and TCS were among the gainers on Sensex chart.
On the other hand, IndusInd Bank, Kotak Bank, Titan, Asian Paints, Bajaj Auto, Tech Mahindra and HDFC were among the top losers.
In a volatile trading session, Sensex traded 80 points lower at 48,093 and Nifty fell by 8 points to 14,137 earlier at the opening bell. Yesterday, Sensex ended 486 points higher at 49,269 and Nifty gained 137 points to 14,484.
Except for FMCG, IT and pharma, all the other sectors closed in green territory, with over 6% rise in PSU banking stocks, a 2.7% gain in realty sector and over 1% rise in auto and media indices.
Vinod Nair, Head of Research at Geojit Financial Services said, "The pace of the market rally continued despite RBI's caution over elevated NPA levels in 2021, supported by PSU Banks and Auto stocks. Majority of the sectors traded in the green in anticipation of good quarterly result while pharma and FMCG experienced some selling. US bond yield has changed its trajectory to a rising trend, which could impact EMs in the future. But FII inflows are strong and the dollar continues to be weak due to oversupply of USD led by the high amount of fiscal stimulus."
Global markets came off the record highs and traded steady this morning after shares on Wall Street pulled back overnight from all-time highs.
US stocks fell on Monday as investors assessed equity valuations and the outlook for more Covid-19 relief stimulus, along with ongoing political turmoil.
Tensions were high in Washington again to start the week as House Democrats introduced an article of impeachment on Monday against President Donald Trump for inciting the mob attack at the Capitol. The lower chamber plans to vote on the article sometime this week. Multiple Cabinet-level officials have quit since the riot, with President-elect Joe Biden set to be inaugurated on January 20.
European markets were also trading lower as rising coronavirus cases in many EU countries weighed as vaccination drive accelerates.
Rohit Singre, Senior Technical Analyst at LKP Securities said,"Nifty suffered mild loss but managed to hold its bullish stream and decisively cross 14500 zone which was a good hurdle in nifty and managed to close a day at 14563 with gains of half a per cent. Going ahead 14500 will act as fantastic support in nifty and holding above said levels we may see some more decisive move in nifty towards 14600-14700 zone. The nifty bank has witnessed a bullish flag breakout on the two-hour chart which suggest nifty bank can outperform and see next move towards 32500-32700 zone."
Ajit Mishra, VP - Research, Religare Broking said,"After a tepid opening, the bulls were back in charge led by positive global cues and healthy buying interest in banking stocks. The Nifty index ended with healthy gains of 0.6% at 14,563 levels. The broader markets too ended with decent gains of 0.4% and 0.3% respectively. On the sector front, Telecom, Auto and Oil & Gas were the top gainers whereas Consumer Durables and Healthcare ended with losses.
Markets will react to the macroeconomic data (IIP & CPI) in early trade on Wednesday. Further, earnings announcements from select IT majors such as Infosys and Wipro would also remain on the participants' radar. We advise participants to align their positions according to the trend but strictly avoid overleveraging at current levels."
On the currency front, Indian rupee, the domestic currency recouped yesterday's losses and closed 15 paise higher at 73.25, supported by weakness in the greenback overseas and recovery in domestic equities.
Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking said," We are witnessing a reversal in the dollar index, while political stability in the U.S. and the probability of a further fiscal stimulus package has pushed the long-term U.S. yields higher. Moreover, there is a possibility that the Fed may reduce its bond-buying plan towards the end of this year, which could further push U.S. yields higher and consequently hurt the rupee. Back home, with RBI mopping up dollar inflows, the local currency can test 73.80 to 74 levels in the coming sessions. We expect the rupee to trade in a broad range of 73 to 74.20 levels for the rest of this month."