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After recording fresh high in early trade, the BSE Sensex and the Nifty faced some resistance in the afternoon session.
Tracking global markets, Indian market too opened on a positive note. Benchmarks surged further to scale new peaks during the morning session, thanks to a rally in Reliance and IT stocks. Market, however, lost momentum, dragged by financials.
The BSE Sensex, which opened just 100 points away from its all time high of 52516.76, breached the 52,600-mark to record a fresh all-time high of 52,641.53. At 1 pm, it was ruling at 52,517.34, up 216.87 points or 0.41 per cent. It hit an intra-day low of 52,388.95.
The Nifty 50 too registered a new high of 15,835.55. It was ruling at 15,798.50, up 60.75 points or 0.39 per cent. It hit an intra-day low of 15,749.80.
Gaurav Garg, Head of Research, CapitalVia Global Research Ltd, said, “In morning trades, Indian equities indexes remained in the green, reflecting gains in their Asian counterparts. Sentiments remained positive as the progressive unlocking process across India is expected to restore nearly two-thirds of the 25 million non-farm employment lost following the lockdown in May, according to the Centre for Monitoring Indian Economy (CMIE) in its research. The Reserve Bank of India has said that it would be buying bonds maturing between 2026 and 2035 which restores the confidence of the investors in the economic recovery.”
“As economic statistics appeared to confirm the Federal Reserve's contention that the current wave of heightened inflation will be temporary, Wall Street equities closed higher on Thursday, with the S&P 500 500 closing above its previous record high,” added Garg.
Coal India, TCS, Tata Motors, HCL Tech and Reliance were the top gainers on the Nifty 50 while Adani Ports, SBI Life, State Bank of India, IndusInd Bank and ICICI Bank were the top laggards.
Coal India, the top gainer on the Nifty 50, recorded a fresh 52-week high of ₹165 on the NSE.
Amar Ambani, Senior President and Head of Research – Institutional Equities, Yes Securities, said, “The stock market is solely focused on the future. Hopes of a quick economic revival post unlock and expectation of large number of adult population vaccinated in 2021, are keeping markets excited. Q4 FY21 earnings have been encouraging, even after adjusting for the low base of March 2020.”
“The broader market is very healthy. It is very likely that the top 10 heavyweights of the Sensex, which have been dormant for some time, will begin to participate. Already RIL has resumed its up move after a six month lull. This will add to the strength of Indian equities,” added Ambani.
RIL, one of the top gainers on the market was trading 1.75 per cent higher on the NSE.
IT stocks in focus; financials drag
On the sectoral front, a majority of indices turned red in the afternoon. As IT, Metals and Pharma rallied, banking and financials were under pressure.
The Nifty IT was up 1.67 per cent while Nifty Metal was up 0.80 per cent. Nifty Pharma was up 0.68 per cent.
Meanwhile, Nifty Bank and Nifty Financial Services were down 0.30 per cent and 0.13 per cent, respectively.
Nifty PSU Bank was down 0.56 per cent while Nifty Private Bank was down 0.40 per cent.
Broader indices
Broader stocks were in the green. However, midcap stocks lost momentum, ending their rally.
Nifty Midcap 50 was up 0.05 per cent while Nifty Smallcap 50 was up 0.84 per cent. The S&P BSE Midcap was down 0.07 per cent while the S&P BSE Smallcap was up 0.26 per cent.
Notably, the volatility index was down 3.18 per cent to 14.53.
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