Sensex and Nifty hit fresh all-time highs in early trade today amid a rise in their global peers. Sensex rose 335 points to 44,953 against previous close of 44,618. Nifty too climbed 103 points to 13,216 against previous close of 13,113.
With today's rally, Sensex has gained 8.47% since the beginning of this year and Nifty has risen 8.17% during the same period. Interestingly, Sensex and Nifty have gained 11.20% and 11.44%, respectively in one month.
On Wednesday, benchmark indices ended flat after a volatile trading session tracking mixed cues from global markets. Sensex ended 39 points lower at 44,618 and Nifty gained 4 points to close at 13,113.
Maruti Suzuki, Hindalco, Tata Steel and GAIL India were the top gainers on Nifty rising up to 3.62%. SBI Life Insurance, Infosys, Bharti Airtel and Axis Bank were the top losers falling up to 1.79% on Nifty.
Here's a look at key factors which led Sensex and Nifty to hit record highs in trade today.
Drugmakers Pfizer and BioNTech said on Wednesday they won permission for emergency use of their COVID-19 vaccine in Britain, which will be one of the first countries to begin vaccinating its population against the virus. This buoyed sentiment across the global markets. In another development, the rollout of a vaccine in the US could begin this month, if regulators give their approval.
Traders across the globe are hoping Democrats and Republicans may reach a deal on some amount of economic stimulus for the US economy before 2021, though they remain divided on the details and the cost. On Wednesday, Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin said during a House Financial Services Committee hearing that Congress needs to approve COVID-19 relief funds without further delay.
Clearing of additional economic stimulus for economic recovery of the world's largest economy will help mitigate effect of the coronavirus pandemic.
Enthused by the news of progress on a Covid-19 vaccine, Asian markets were trading higher today. Hong Kong's Hang Seng edged 0.2% higher to 26,582.85 and the Nikkei 225 in Tokyo was almost unchanged at 26,806.37. South Korea's Kospi added 0.2% to 2,680.58 and the S&P/ASX 200 in Australia picked up 0.4%, to 6,613.60.
Overnight, the S&P 500 index rose 0.2% to an all-time high of 3,669.01, a second straight record close.
FIIs have been infusing funds into the Indian equity markets in this month too. During two trading sessions, they have invested Rs 3,599 crore in Indian markets.
In November, they invested Rs 65,317 crore, the highest inflows in a particular month.
Shoots of economic recovery
Contracting for the second consecutive quarter, India's GDP fell 7.5 per cent during September quarter, albeit much slower than 23.9 per cent decline registered in June quarter, signalling a rebound. The better than expected growth was primarily due to significant rebound in the sectors like manufacturing, construction and 'trade, hotels, transport, communication & services related to broadcasting'.