Stocks

Sensex, Nifty trade 1% higher after hitting record highs

Our Bureau. MUMBAI | Updated on August 30, 2021

Metals, pharma lead the way; IT stocks under pressure

Benchmark indices were trading one per cent higher during the afternoon trade on Monday after hitting record highs. 

Bulls kept a firm grip on the market during the morning trade following dovish comments by the US Fed Chair Powel at the Jackson Hole symposium. Indices remain firm in the afternoon, with all sectors except IT trading in the green. Metals and pharma led the rally.

After recording an all-time high of 56,734.29 in the morning session, the BSE Sensex at 1 pm.was trading at 56,680.28, up 555.56 points or 0.99 per cent. It recorded an intraday low of 56,309.86. The Nifty 50, too, record a fresh high of 16,881.35 and currently ruling at 16,877.65, up 172.45 points or 1.03 per cent. It recorded an intraday low of 16,764.85.

Tata Steel, Divi's Labs, ONGC, Coal India and Sun Pharma were the top gainers on the Nifty 50 while Tech Mahindra, Infosys, HCL Tech, Wipro and Eicher Motors were the top laggards.

Read also: Nifty to move past 16,800 indicates SGX Nifty

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services said, "The much-awaited Fed commentary after the Jackson Hole Symposium has indicated that "it would be appropriate to start reducing asset purchases this year.

"But the Fed chief has hastened to add that there is much ground to cover before rate hikes. So, even though this can be treated as the beginning of normalisation of the accommodative policy, the communication is smart enough not only to calm the markets but to enthuse it too. Consequently, the dollar index has slipped to below 93, and the risk-on in US markets has pushed the indices to record highs. This will enthuse the bulls in India too," added Vijayakumar.

According to Gaurav Garg, Head of Research CapitalVia Global Research Ltd, traders are encouraged as a foreign direct investment (FDI) rose. Asian shares also perked up following the US Federal Reserve chairman speech.

Also read: Stocks that will see action today

IT under pressure

On the sectoral front, all indices except Nifty IT were in the green, with metals, realty and pharma leading the rally.

Nifty IT was down 0.18 per cent.

Meanwhile, Nifty Metal was up 2.47 per cent while Nifty Realty was 2.15 up per cent. 

Nifty Pharma was up 2.10 per cent. Nifty Healthcare Index was up 1.66 per cent. Consumer Durables and Auto also gained. Nifty Auto was up 1.50 per cent, while Nifty Consumer Durables was up 1.70 per cent. Financials were also trading over 1 per cent higher. 

Broader indices outperform

Broader indices also rallied, outperforming the benchmarks.

Nifty Midcap 50 was up 1.81 per cent, while Nifty Smallcap 50 was up 1.66 per cent. The S&P BSE Midcap was up 1.61 per cent, while the S&P BSE Smallcap was up 1.70 per cent. 

The volatility index fell 2.05 per cent to 13.13.

 

Published on August 30, 2021

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