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Market close update
Indian benchmark indices surged to record highs on Monday, mirroring a rally in global markets as investors wagered on improved trade relations and more fiscal stimulus under a Joe Biden presidency in the US.
Rising for the sixth straight session, the BSE Sensex vaulted 704.37 points or 1.68 per cent to close at its lifetime peak of 42,597.43. Intra-day, it touched its all-time high level of 42,645.33.
The previous closing record for the Sensex was 41,952.63, hit on January 14, 2020.
Similarly, the broader NSE Nifty climbed 197.50 points or 1.61 per cent to finish at its all-time high of 12,461.05. It hit its record level of 12,474.05 during the day.
IndusInd Bank was the top gainer in the Sensex pack, spurting 4.95 per cent, followed by Bharti Airtel, ICICI Bank, Axis Bank, PowerGrid, Tata Steel, Titan and HDFC Bank.
Only three index constituents closed in the red -- ITC, Maruti and Bajaj Finserv, slipping up to 0.66 per cent.
World markets marched higher after Biden was declared the winner in the tightly-contested US election, though President Donald Trump has yet to concede the race.
Toning down of trade war rhetoric and a likely sharper focus on combating the COVID-19 pandemic in the US augur well for equities, analysts said.
“Firm global cues and a clear majority to favourite Democratic Party in the US election took main benchmark indices to all time high. The rally in the domestic market was also led by banking and finance stocks on improved business outlook post Q2 results, end to moratorium and bounce back of economic activities.
“Broader market has shown under-performance compared to headline peers as investors feel safer chasing heavyweights during high market levels. We expect more stimulus measures are required to boost the economy and announcements regarding the same from the government is expected in the near future that can further accelerate our domestic market,” said Vinod Nair, Head of Research at Geojit Financial Services.
BSE telecom, bankex, power, metal, finance, consumer durables and teck indices rallied up to 3.81 per cent, while healthcare ended in the red.
Broader BSE mid-cap and small-cap indices rose up to 1.01 per cent.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo ended up to 2.12 per cent higher.
Stock exchanges in Europe were also trading with robust gains in early deals.
FPIs purchased shares worth a net Rs 4,869.87 crore on Friday, according to provisional exchange data.
Meanwhile, international oil benchmark Brent crude was trading 2.26 per cent higher at USD 40.34 per barrel.
The rupee surrendered all its early gains to settle 7 paise lower at 74.15 against the US dollar, in line with weaker Asian peers against the greenback.
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Shares of Divi’s Laboratories on Monday gained 7 per cent after the firm reported a 45.63 per cent rise in consolidated net profit for the quarter ended September 30.
The stock rose by 6.92 per cent to Rs 3,461.80 on the BSE.
On the NSE, it jumped 6.98 per cent to Rs 3,463.40.
The drug firm on Saturday reported a 45.63 per cent rise in its consolidated net profit at Rs 519.59 crore for the quarter ended September 30, mainly on account of robust sales.
The company had posted a net profit of Rs 356.78 crore for the corresponding period of the previous fiscal, Divi’s Laboratories said in a filing to BSE. - PTI
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Today, the domestic currency opened with a gap-up at 73.94, thereby crossing over the barrier at 74. The nearest hurdle that the rupee can face is at 73.85. If the positive momentum sustains and INR can breach this level, it might appreciate to 73.7. But if the local currency declines and slip below 74, it could weaken to 74.25. Subsequent support is at 74.5.
Rupee open
Rupee rises 14 paise to 73.94 against US dollar in early trade.
Opening bell
Rallying over 650 points, equity benchmark Sensex hit its record intra-day level in early trade on Monday, driven by broad-based gains amid massive foreign fund inflow and positive cues from global markets.
After touching its lifetime peak of 42,566.34 in the opening session, the 30-share BSE index was trading 627.21 points or 1.50 per cent higher at 42,520.27.
Similarly, the broader NSE Nifty too claimed a fresh high of 12,451.80. Later, it was trading with 178 points or 1.45 per cent gain at 12,441.55.
All Sensex components were trading in the positive territory. ICICI Bank was the top gainer, surging around 3 per cent, followed by Infosys, HCL Tech, Axis Bank, Bharti Airtel and Bajaj Finance.
In the previous session, Sensex ended 552.90 points or 1.34 per cent higher at 41,893.06, and the broader NSE Nifty surged 143.25 points or 1.18 per cent to 12,263.55.
Foreign institutional investors remained net buyers in the capital market as they purchased shares worth Rs 4,869.87 crore on Friday, according to provisional exchange data.
“Trade set up in the domestic market looks to be strong on favourable global cues,” said Arjun Yash Mahajan Head Institutional Business at Reliance Securities.
Financials have mainly supported the domestic market rally in last week mainly led by strong 2Q numbers, steady asset qualities and improving collection efficiencies, he added.
Wall Street notched its best weekly performance last week since April as key indices in the US registered weekly gains of 7-9 per cent, he said.
Democrat Joe Biden has defeated incumbent US President Donald Trump in the bitterly-fought presidential election.
Most market participants are hoping the Biden regime would spell good news for Indian companies, especially IT, and domestic financial markets.
Coming back to domestic factors, investors will also focus on industrial production and inflation data, scheduled to be announced on Thursday.
Elsewhere in Asia, bourses in Shanghai, Hong Kong, Seoul and Tokyo were trading up to 2.41 per cent higher in mid-session deals.
Meanwhile, international oil benchmark Brent crude was trading 2.66 per cent higher at USD 40.50 per barrel.
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