Sensex and Nifty hit their fresh all-time highs today led by gains in banking, metal and information technology stocks. While Sensex hit 41,401 rising 463 points against its previous close of 40,938, Nifty gained 129 points to 12,182 compared to previous close of 12,053. Sensex has hit new high for the second straight day. On Monday, Sensex reached a new peak of 41,185. Nifty50 too rose to 12,158, its all-time high. Sectorally, all the indices traded in the green. Benchmark indices logged their highest closing ever with Sensex rising 413 points to 41,352 and Nifty gaining 111 points to 12,165.
Sectorally, gains were led by BSE IT index which rose 256 points to 15,439. BSE metal and bankex too gained 291 and 191 points, respectively. While Sensex has gained 14.65% (5,283 points) since the beginning of this year, Nifty has risen 12% (1302 points) during the same period. Here's a look at 10 things to know about Sensex and Nifty hitting fresh highs today.
- Tata Steel (4.38%), Bharti Airtel (4.30%) and Vedanta (3.50%) were the top Sensex gainers. On Nifty too, same pack of stocks led the gains. Of 30 Sensex stocks, 22 closed in the green. On Nifty, 39 components ended higher against 11 stocks falling on the benchmark index.
- Market breadth was positive with 1441 stocks rising against 1067 falling on BSE. 197 stocks were unchanged. 47 stocks on BSE hit their 52-week highs against 131 touching their 52-week lows. Number of securities hitting their upper circuits stood at 224 against 220 making fresh lower circuits.
- On BSE, Time Technoplast Ltd, NIIT Tech and Tata Steel were the top gainers. CG Power, MRPL and Whirlpool were top losers on BSE.
- Strong inflows by FIIs have fuelled the rise in benchmark indices. In November alone , FIIs brought in Rs 12,924 crore into the domestic equity market. In October, FIIs had poured in Rs 8,595 crore after a gap of five months.
- Bank Nifty hit all time high of 32,213 intra day in trade today. The index closed 166 points higher at 32,140. BSE bankex too hit its record high of 36,745. The index ended 181 points higher at 36,667.
- Morgan Stanley said India's weightage in the MSCI Emerging Market index is set to rise after FM Nirmala Sitharaman confirmed implementation of the Budget announcement of increasing the statutory foreign portfolio investment limit in a company from 24 per cent to sectoral foreign investment limit effective April next year. "Using the current list of constituents, we expect MSCI India's weight to rise by about 70 bps (basis points) in the semi-annual index review of May 2020, implying passive flows of US $2.5 billion," said Morgan Stanley. This led to positive sentiment in the market today.
- Mustafa Nadeem, CEO at Epic Research said, "Markets are at record highs, and we believe the strength is seen in markets coming in from few spaces such as auto, metals, banks and financials. Mid-caps have also added some good gains in the last 3 months. We believe the momentum may continue in the near term since we have seen a clear breakout from previous all-time highs. The sustaining of 12,100 - 12,150 should put the index in the next leg of upside towards 12,400 - 12,500.
- Ajit Mishra, VP -Research at Religare Broking said, "While market gains could extend in the coming sessions, we prefer to remain cautious at higher levels. We believe volatility is likely to remain high in the near term, hence investors should follow stock specific approach focusing on fundamentally sound stocks at attractive valuations. Meanwhile, investors would keep a watch on outcome of GST council meet (scheduled tomorrow) as well as continue to track global markets."
- Strong Chinese economic data helped sentiment in global markets. Growth in factory activity and retail sales in the world's second-largest economy that both beat analysts' expectations in November led Asian shares higher in trade today. Japan's benchmark Nikkei 225 added 0.3% in early trading to 24,028.41. South Korea's Kospi gained 0.6% to 2,181.99. Hong Kong's Hang Seng added 0.4% to 27,627.97, while the Shanghai Composite stood at 2,990.38, up 0.2%. Australia's S&P/ASX 200 was little changed at 6,848.40.
- Overnight, US markets hit all-time highs for the third straight trading day after US and China reached a long-awaited "Phase 1" trade deal. The trade pact removed some of the uncertainty that's hung over businesses and investors. The S&P 500 rose 22.65 points, or 0.7%, to 3,191.45. The benchmark index is on a four-day winning streak. The Dow Jones Industrial Average gained 100.51 points, or 0.4%, to 28,235.89. The Nasdaq composite climbed 79.35 points, or 0.9%, to 8,814.23.
By Aseem Thapliyal