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Benchmark indices scaled fresh high on Tuesday in early day, on the back of continued foreign institutional investors buying.
After opening at 47,466.42, the BSE Sensex hit a peak of 47,639.92 almost immediately and is currently hovering (9:30 am) around 47,635.78, a gain of 282 points over the previous day's close. Similarly, the Nifty50 index has crossed the 13,900-mark seamlessly and hit a high of 13.957.30. The broader index is currently ruling with a gain of 0.55 per cent or 76 points at 13,949.20.
Except PoweGrid, Nestle India and L&T, all other BSE Sensex stocks are ruling in the green with IndusInd Bank (3.36 per cent), HCL Technologies (1.66 per cent) and Axis Bank 1.27 per cent.
Liquidity continues to drive markets. With two more days to go in this month, FII inflows are likely to cross Rs 60,000 cr in December on top of the Rs 60,300 cr that came in November said VK VIjaykumar Chief Investment Strategist at Geojit Financial Services.
As many as 1,522 stocks advanced on the BSE and 414 declined while 95 remained at the same level. Similarly 169 stocks have registered their 52-week high on Tuesday against 12, which tested 52-week lows, on the BSE.
"India's performance is in line with the performance of other emerging market peers but valuations are much higher," cautioned Vijaykumar
According to analysts, optimism on coronavirus vaccines and reports that the US President Donald Trump signing a coronavirus relief and government spending package into law on Sunday continued to keep the market buoyant. Besides, the European Union and the UK reaching an agreement on fair competition and fishing rights, also turned sentiment positive for global as well as Indian stock markets, they added.
Vijaykumar said: " Mid-small-caps which have outperformed during the last six months have some more steam to go up. Also the Bank Index is still 5 per cent below its peak. So, some more catching up is possible there as the Q3 results from private sector banking majors will be good. That said, aggressive buying at peak valuations is not advisable."
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