The benchmark indices Sensex, Nifty continued their rally on Monday to scale fresh all-time highs supported by sustained buying from foreign portfolio investors (FPIs).
The BSE Sensex gained 529.03 points, or 0.8 per cent, to close at a new peak of 66,589.93. It surged to an intraday high of 66,651.21. The broader Nifty rose 0.75 per cent, or 146.95 points to settle at 19,711.45 for the first time.
In the first fortnight of July, FPI bought Rs 30,600 crore of domestic shares. On Monday, FPI infused Rs 73 crore on a net basis into the Indian equity market, according to the BSE’s provisional data.
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“…the scenario has changed with US consumer inflation declining more-than-expected to 3 per cent giving hopes that the Fed is near the end of the rate hiking cycle. Consequently, the US 10-year bond yield has sharply dipped from 5.1 per cent to 4.7 per cent and the Dollar Index has crashed by nearly 4 per cent from 103.57 to 99.9. This is positive for emerging markets like India, which are likely to witness more capital flows,” said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Most European and some Asian shares slipped on Monday after data showed the Chinese economy is growing a lot more slowly than expected and market participants getting impatient with the lack of major fiscal stimulus from Beijing, HDFC Securities Head of Research Deepak Jasani said.
Despite this, the Indian market exhibited resilience in anticipation of a bumper first quarter results.
In the Nifty50, State Bank of India, Wipro Ltd, Dr Reddy’s Laboratories, Grasim Industries and HDFC Bank were the top gainers. ONGC, Hero Motocorp, Tata Motors, Titan and Bharti Airtel Ltd were top losers on Monday.
“Markets were in sublime form as benchmark indices scaled fresh peaks on the back of a rally in banking stocks after HDFC Bank announced better-than-expected Q1 results. Most of the corporate results announced so far have more or less met expectations, which shows the improving health of our economy,” said Shrikant Chouhan, Head of Research (Retail), Kotak Securities Ltd. Nifty Bank rose 1.41 per cent, or 630.45 points, to close at 45,449.75.
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“The strong support level is identified at 44,700, which is expected to act as a key level for potential pullbacks or market dips. A break above the level of 45,500 is anticipated to drive the index towards new high levels, indicating the potential for further upward momentum,” LKP Securities’s senior technical & derivative analyst Kunal Shah said.