After hitting record highs in the morning trade, market indices turned volatile during the last hour and closed lower on Thursday, in line with mixed global equities. While Sensex closed 167 points lower at 49,624, Nifty fell 54 points to end at 14,590.
Here are 10 things to know about today's market trend today:
1. Earlier, Sensex rose above the historic mark of 50,000 and Nifty above 14,700 for the first time amid rise in Asian markets. Sensex and Nifty hit fresh lifetime highs of 50,184 and 14,753, respectively.
2. While sectoral indices were trading higher in the morning session, all of them closed in red by the closing bell. PSU Bank index fell the most by 3% followed by 2.5% drop in realty index, 2% fall in media, metal index and 1% fall in auto, pharma and the private banking sector.
3. Asian shares followed US markets on Thursday that hit all-time highs with Biden taking over the presidency in the US and amid rising hopes of additional stimulus from the new government to put the world's largest economy back on a growth path. Powered by gains in technology, communications, health care and most other sectors, Wall Street indices also topped previous all-time highs set earlier this month. Enthusiasm over COVID-19 vaccines and potential economic moves also kept sentiments positive. Bank of Japan kept its easy monetary policy at its policy board meeting. The overseas trend however, turned mixed by the closing session on profit booking amid high valuations.
4. Amid continued FII inflows and positive global cues, the market reached new highs today but succumbed to profit-booking in fag-end trade to finish in the red. The benchmark indices were impacted by selling in banking, finance and IT counters.
5. FII bought 2289.05 into domestic equity market on Wednesday. Meanwhile, foreign institutional investors have pumped in Rs 20,236 crore in equities in January so far and have infused over Rs 1.5 lakh crore into the markets since it hit multi-year low in March last year.
6. On the currency front, rupee extended gains for the third straight session and closed 6 paise higher, ending near 5-month high of 72.99 per dollar today. Meanwhile, the US dollar slipped to 103.54.
7. In early trade, Bajaj twins, HCL Tech, Titan, Tech Mahindra, RIL, Kotak Bank were among the top gainers on Sensex. On the flip side, Nestle, HDFC, TCS, HDFC Bank were the only losers. Later, ONGC, Bharti Airtel, SBI, IndusInd Bank, NTPC, Sun Pharma and ITC were the top losers while Bajaj Finance, Bajaj Auto, Reliance Industries (RIL), Bajaj Finserv and Asian Paints closed in green territory.
8. On the BSE index touching the 50K mark, Deepak Jasani, Head of Retail Research, HDFC Securities said," It is a momentous day for India's capital markets as the Sensex touched 50,000. The gain of the last 5,000 points has come in just 32 trading sessions. Expectations of a turnaround in the economy post-Covid vaccinations and continued FPI inflows have led to this kind of gains for Indian markets in a globally low-interest scenario. Post the forthcoming Union Budget, we may witness a temporary brake to the uptrend and further up moves from hereon will depend on the pace of economic and corporate earnings growth and the trajectory of inflation and interest rates in India and the world."
9. According to VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, "The smooth transition in the US and President Biden's healing speech lifted the US markets to record highs. This feel-good factor is likely to spread to other markets too. Sensex at 50,000 is a reality. FII inflows, which had declined a bit during the last few days, have again turned strong going above Rs 2,200 crore yesterday. Apart from robust FII inflows, another major factor supporting the rally is the impressive corporate results, which started in Q2 and continue in Q3. While enjoying this bull run, investors should not be carried away by the euphoria. At high levels, markets are vulnerable to corrections."
10. Rahul Sharma, Head-Technical & Derivatives Research, JM Financial Services said, "What a day for Sensex to hit 50k. 21st Day of the 21st Year, of the 21st Century! However, we believe this is more of a mental milestone but an important one. Since booking the profit is better than looking at the profit, we advise to take some profits around Nifty 14,800/15,000 levels & keep the portfolio's hedged with Nifty Put Options of February Expiry. As a Budget Strategy for traders, it's best to buy the expectation & sell the realization. Maintain trailing stop loss of 14,440 for positional longs in Nifty."
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