Stock Market: Gains across sectors - led by financial and energy shares - pushed the indices higher
Domestic stock markets closed at record highs on Tuesday, with the benchmark Nifty 50 index taking out the 13,000 level for the very first time, as signs of progress on a coronavirus vaccine spurred hopes of a faster economic recovery. The S&P BSE Sensex ended 1.01 per cent higher at 44,523.02 and the broader NSE Nifty 50 benchmark settled up 1 per cent at 13,055.15. The Nifty has gained about 12 per cent so far this month on the back of upbeat vaccine trial results and strong inflows from foreign institutional investors (FII).
Here are the highlights of Tuesday's market session:
The Sensex ended 445.87 points - or 1.01 per cent - higher at 44,523.02, and the Nifty settled at 13,055.15, adding 128.70 points - or 1.00 per cent - to its previous close -- both record closing highs. Gains across sectors, led by banking stocks, supported the markets.
Real estate shares were witnessing strong buying interest in the last hour of trading. The Nifty realty index rose 2 per cent.
Top gainers in real estate shares:
- Sunteck Realty up 13.51%
- Sobha Ltd up 3.5%
- Godrej Properties up 3.21%
- DLF up 2.10%
- Indiabulls Real Estate up 2%
- Prestige Estates up 1.95%
"The overall sentiments are strong and the market outlook is positive going forward. If the foreign fund inflows continue we can see higher levels on Nifty in coming days/weeks. Nifty can possibly touch 13,200-13,400 levels also. But it also depends on the sustainability of the economic growth over the next few months post festive season. Hence at the current market levels it is advisable to partially book profits and sit on 15-20 per cent cash in the portfolio. Any corrections in the market can be used to deploy funds at lower levels," Hemang Jani, Head - Equity Strategy, Broking & Distribution, Motilal Oswal Financial Services said in a note to clients.
The Sensex and Nifty 50 indexes continue to scale new highs in trade on Tuesday led by gains in banking stocks such as HDFC Bank, Axis Bank, ICICI Bank, ITC and ICICI Bank.
The Sensex rose as much as 447 points to hit a record high of 44,524.36 and Nifty 50 index rallied 133 points to an all-time high of 13,059.
Fitch expects operating conditions to remain challenging for Indian non-bank lenders, even as the economy gradually recovers from the 2020 pandemic-driven contraction. Earnings and liquidity constraints are likely to continue for many wholesale and retail borrowers, although the effects will differ by sub-segment.
This will place further pressure on credit quality, although the restructuring of problem loans may continue to mask near-term stress, Fitch Ratings said in a note on Indian non-banking finance companies.
Reliance Industries said its subsidiary, Jio Platforms, received the subscription amount of Rs 33,737 crore from Google International LLC, as part of the deal announced in July wherein the internet major agreed to purchase a 7.73 per cent stake in the RIL unit. The shares of Reliance Industries slipped by 1 per cent on the BSE to touch an intra-day low of Rs 1,921.20 in early trading. At 10:45 am, the shares were trading lower by 0.4 per cent at Rs 1,971.80 on the BSE.
Reliance Industries chairman Mukesh Ambani had announced at the group's 43rd, and first-ever virtual annual general meeting, held on July 15 that Google would invest Rs 33,737 crore for a 7.7 per cent stake in Jio Platforms. This investment by Google valued Jio Platforms at an equity value of Rs 4.36 lakh crore.
The 1-2 day trend of the Nifty is now up and Nifty is likely to target the 13,050 levels in the very near term. Our 3-7 day targets are at 13,100-13,200 as the Nifty has reversed its recent downtrend on the intraday timeframe and we therefore expect more upsides in the coming sessions.
Our bullish bets for next 7 days are off if Nifty dives lower and moves below the recent swing lows of 12,730.
The S&P BSE Sensex and NSE Nifty 50 indexes were trading firmly around record highs in noon deals led by gains in HDFC Bank, Axis Bank, ITC, ICICI Bank, Kotak Mahindra Bank and Mahindra & Mahindra. As of 1:02 pm, the Sensex was up 349 points at 44,426 and Nifty advanced 103 points to 13,030.
Key market statistics:
- All the 11 sector gauges compiled by NSE, barring the index of PSU Banks, were trading higher led by Nifty Auto index's 1.7 per cent gain.
- Mid- and small-cap shares trade firmly higher respective indexes rise 0.7 and 0.9 per cent each respectively.
- 35 shares in the Nifty 50 basket trade higher led by Adani Ports' 6 per cent gain.
- Shree Cements, HDFC, BPCL, HDFC Life, IndusInd Bank and Titan among notable losers in the Nifty 50 basket of shares.
The NSE Nifty 50 has gained about 12 per cent so far this month on the back of upbeat vaccine trial results and strong inflows from foreign institutional investors (FII), analysts said.
The NSE Nifty 50 index surpassed 13,000 mark for the first time on Tuesday. The index fell to multi-year lows of 7,511 on March 24 and has rallied a whopping 74 per cent from March lows to hit new record high.
Banking shares were leading the rally in today's session wherein the Sensex and Nifty surged to record highs. The Sensex rose as much as 422 points to hit an all-time high of 44,499.62 and Nifty surpassed 13,000 mark for the first time.
Nifty Bank index was top sectoral gainer, up nearly 2 per cent or 542 points to 29,552.
Premium on the Nifty 13,000 strike price call option contract expiring on November 26 surged as much as 85 per cent to Rs 105. As many as 7.97 lakh shares were added to the open interest which stood at 44.67 lakh shares.
Premium on the Nifty 13,100 strike price call option contract expiring on November 26 surged as much as 78 per cent to Rs 45.65. As many as 5.40 lakh shares were added to the open interest which stood at 27.34 lakh shares.
On the flipside, premium on Nifty 13,000 put option contract expiring on November 26 declined as much as 46 per cent to Rs 65.20. Over 30 lakh shares were added to the open interest which stood at around 42 lakh shares.
The overall market breadth was positive as 1,421 shares were advancing while 1,069 were declining on the BSE. On the National Stock Exchange, 1,025 were advancing while 760 were losing.
Mid- and small-cap shares were witnessing buying interest as the respective indices on National Stock Exchange were up 0.7 and 0.9 per cent each respectively.
Top Mid-Cap Gainers:
- Future Retail up 10%
- RBL Bank up 4.59%
- M&M Financial Services up 4.25%
- Larsen & Toubro Infotech up 3.75%
- Shriram City Union Finance up 3.67%
Top Small-Cap Gainers:
- Kirloskar Brothers up 11.22%
- Sanghvi Moers up 11%
- Alembic up 10.41%
- Future Lifestyle Fashions up 9.79%
- Bhansali Engineering Polymers up 9.15%
S&P BSE MidCap: +0.51%Banking and financial services shares continued to support the markets. The Nifty Bank index - which tracks stocks of 12 major lenders in the country - jumped as much as 1.73 per cent in morning deals, led by HDFC Bank, Axis Bank and SBI.
HDFC Bank, ICICI Bank, Infosys and ITC were the biggest contributors to the gain in Sensex. The four accounted for more than 200 points in the rise in the 30-scrip index.
Overall market breadth was positive, with an advance-decline ratio of 2:1, as 1,304 shares moved higher on the BSE against 595 that traded lower. On the NSE, 1,194 shares rose while 497 fell.
The Sensex rose 353.26 points - or 0.80 per cent - to touch 44,430.41, and the Nifty touched 13,029.50, up 103.05 points from its previous close -- both all-time highs. Both benchmark indices were up for a third day running.
The Sensex opened 264.04 points - or 0.60 per cent - higher at 44,341.19, and the Nifty started the day at 13,002.60, up 76.15 points - or 0.59 per cent - from its previous close. Gains across sectors - led by banking, financial services and oil & gas shares - supported the markets.
Domestic stock markets are set for a flat start on Tuesday, despite gains across Asian equities as COVID-19 vaccine progress shored up global sentiment and US President-elect Joe Biden was given the go-ahead to begin his White House transition.
The Singapore Exchange's Nifty futures - an early indicator of the National Stock Exchange's Nifty benchmark index - was flat ahead of the opening of Indian markets. At 7:30 am, the SGX Nifty futures traded almost unchanged at 12,953.
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