Market cap of BSE-listed firms rose to a record Rs 196.56 lakh crore after IT stocks took the benchmark indices to record highs today. Investor wealth rose by Rs 90,468 crore with Sensex gearing up to scale the key 50K mark. On Monday, indices closed 1% higher each with Sensex topping 49,000 mark for the first time and Nifty nearing 15K mark. While Sensex ended 486 points higher at 49,269, Nifty gained 137 points to 14,484.
IT stocks rose to record highs buoyed by TCS' growth outlook, which declared its Q3 earnings last week. BSE IT index reached its all-time high of 26,833 during the day rising 998 points against previous close of 25,835. Later, the index closed 3.63% or 937 points higher at 26,773. The index has gained 69.87% in one year.
HCL Tech, Infosys and Wipro share were among the top Nifty gainers and ended up to 6% higher. Similarly, Nifty IT index ended 3.31% or 865 points higher to 27,027. The index rose 933 points to all-time high of 27,095 during the session.
Auto stocks also led to record rally today with BSE auto index rising 2.56% or 563.46 points higher at 22,561 against previous close of 21,997.
Compared to its four-year low of 25,981 on March 23, 2020, Sensex has gained 89.63% till date. Similarly, Nifty has clocked a gain of 90.32% from its March 23 low of 7,610.
Despite indices hitting record highs, market breath was negative with 1,468 stocks closing higher against 1,690 ending lower on BSE today. 140 stocks were unchanged.
The bullishness in stock market was reflected by the number of securities hitting upper and lower circuits on BSE. While 466 shares hit their upper circuits on BSE, 247 stocks fell to their lower circuits today.
Similarly, 501 stocks reached their 52 week highs and 40 shares slipped to their 52-week lows on BSE.
However, analysts do not expect the rally to continue for long and advise investors to keep booking profit on a continous basis.
Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel Broking said, "Today's move was mainly propelled by IT and auto stocks; whereas banking remained slightly on the backfoot. Traders should look to identify such appropriate themes and we reiterate that it's better to keep booking profits in the ongoing rally, because every now and then, we are likely to see stock specific correction in the market."
Rohit Singre, Senior Technical Analyst at LKP Securities said, "Going forward, index has shifted its support to 14,400-14,300 zone if managed to hold above-said levels, we may see the index to march towards 14,550-14,600 zone which is immediate hurdle on the higher side"
Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan by BNP Paribas said,"On the way up, Nifty has crossed a rising trendline on the daily chart drawn from the crucial swing highs. This shows that the bulls are having upper hand on the index. The benchmark index is heading towards the short term target of 14,600 beyond which 15,000 will be the next major target. On the downside, 14,300-14,250 will act as a key support zone."