This Article is From Nov 18, 2020

Sensex Clocks Record Closing High As Market Rally Continues

Strong buying interest in bank and automobile shares pushed the markets higher, however selling pressure in IT, pharmaceutical and consumer goods stocks limited the upside.

Sensex Clocks Record Closing High As Market Rally Continues

Gains in bank, automobile and energy shares supported the markets

Domestic stock markets recovered initial losses to register new record highs in a volatile session on Wednesday, despite caution in Asian equities as investors weighed the prospect of recovery in global economy battered by the coronavirus pandemic. The S&P BSE Sensex index jumped 262.78 points - or 0.60 per cent - to touch an all-time high of 44,215.49 during the session, and the broader NSE Nifty 50 benchmark climbed to a record 12,948.85. Strong buying interest in bank and automobile shares pushed the markets higher, however selling pressure in IT, pharmaceutical and consumer goods stocks limited the upside.

Here are 10 things to know about the markets today:

  1. The Sensex ended 227.34 points - or 0.52 per cent - higher at 44,180.05, and the Nifty settled at 12,938.25, up 64.05 points - or 0.50 per cent - from its previous close -- both record closing highs.

  2. Mahindra & Mahindra, Tata Motors, Bajaj Finserv, Larsen & Toubro, IndusInd Bank and State Bank of India, closing between 5.12 per cent and 10.64 per cent higher, were the top gainers in the Nifty basket of 50 shares.

  3. On the other hand, Bharat Petroleum, Hindustan Unilever, Dr Reddy's, Titan, TCS and ITC, down 1.49-2.85 per cent each, were the worst hit among 24 laggards in the index.

  4. Larsen & Toubro, ICICI Bank, Mahindra & Mahindra and SBI were the biggest contributors to the gain in Sensex.

  5. Optimism around vaccines becoming available and sustained inflows from foreign institutional investors should keep sentiment in domestic markets positive, said Siddharth Khemka, head of research for retail at Motilal Oswal Securities.

  6. "Profit-booking might pull down the market for some time, but we don't expect a huge downtick from here," he said. "In the near-term, we expect markets to continue their upward journey."

  7. Analysts awaited news updates from a key Supreme Court hearing on interest waivers for loans under moratorium. The outcome of the case could have far-reaching consequences not only for millions of borrowers, but also for banks.

  8. Globally, equities stepped back after soft US retail sales data and new coronavirus restrictions in several American states dampened euphoria from vaccine trial breakthroughs.

  9. In India, the government planned more curbs, including lockdowns of some markets, as the capital city battles its worst phase in the pandemic, although new infections in other cities are falling. The surge in infections in New Delhi and elsewhere globally comes as investors hail two promising vaccine trial results published this month, from Pfizer and Moderna.

  10. Lakshmi Vilas Bank shares fell 20 per cent after the government placed the troubled lender under a moratorium.