Benchmark indices scaled new peaks on Friday as the BSE Sensex crossed the historical 60,000 mark on Friday, with Nifty less than 50 points away from 18,000 at the opening as the bull run continued. Easy liquidity, positive global cues due to relatively expected FOMC meeting continued to enthuse investors. 

However, the market remained volatile through the day amid profit-booking, with benchmark indices ending with marginal gains and broader markets witnessing increased selling pressure. 

After surpassing the historic 60,000 mark, the BSE Sensex, recording a fresh all-time high of 60,333, closed at 60,048.47, up 163.11 points or 0.27 per cent. It recorded an intraday low of 59,946.55. The Nifty 50, which nearly missed the 18,000-mark with a fresh all-time high of 17,947.65, closed at 17,853.20, up 30.25 points or 0.17 per cent. It hit an intraday low of 17,819.4.

The m-cap of BSE listed stocks stood at ₹2,61,18,340.21 crore at closing.

Ashishkumar Chauhan, MD & CEO, BSE said, “Sensex reaching 60,000 today first time ever on September 24,2021, is an indicator of India's growth potential, as well as the way India is emerging as a world leader during COVID period in addition to worldwide monetary expansion and relaxed fiscal policies adopted by world powers.”

“Indian markets are considered the best performing markets world over in the last 18 months of Covid period due to astute policies and implementation of government, private sector and everyone else involved. Many more investors are also joining the stock markets directly or indirectly through mutual funds thanks to automation in the markets, new age brokerages and low-interest rates in India. The increase in stock prices has been broad-based in the recent period,” added Chauhan.

Naveen Kulkarni, Chief Investment Officer, Axis Securities, on this iconic event, said, "We could see many more positive surprises from the market in the next one-two years, as we are entering into a positive upcycle of earnings trajectory. A fully functional economy over the upcoming festival season and the sustenance of earnings momentum in Q2 FY22 are the near-term triggers for the market."

Breadth favours decliners 

 

However, the market breadth turned negative, with as many as 1,940 stocks declining on the BSE compared to 1,329 stocks that advanced while 153 remained unchanged. Furthermore, 284 stocks hit the upper circuit compared to the 172 stocks locked in the lower circuit. Besides, 244 stocks touched a 52-week high level, and 20 touched a 52-week low.

Even as the BSE Sensex crossed the historical 60k mark, experts cautioned investors of near-term volatility. 

Motilal Oswal, MD & CEO, Motilal Oswal Financial Services Limited, said, “Equity market today had a historical day with Sensex touching 60,000 for the first time driven by large caps with many index heavyweights touching new highs. The rally in domestic market is driven by positive global cues, strong inflows by FIIs/DIIs, good corporate earnings, falling Covid-19 cases, upbeat corporate commentaries and low cost of capital.”

“Amid the buoyant sentiment and increased activity, valuations have reached elevated levels and demand consistent delivery on earnings expectations. Given rich valuations, one cannot ignore intermittent volatility – however, we expect the positive momentum to continue on the back of improving economic activity and recovery in corporate earnings,” added Oswal. 

According to Santosh Meena, Head of Research, Swastika Investmart Ltd, investors must remain cautious on the parabolic move in the last few days as short-term correction can't be ruled out in the coming days. 

“Global indices like Dow Jones and Dax are near to their critical resistance and may witness a correction from here. We are in a strong uptrend and outperforming global markets while some mean reversion can be seen in the coming days where rising crude oil prices and surge in US bond yield could cause near-term volatility,” said Meena. 

As per Shibani Kurian, Senior EVP & Head- Equity Research, Kotak Mahindra Asset Management Company, market movement hereon is likely to be determined by any contagion effect from the Evergrande crisis in China, the Q2-FY22 corporate results and the commentary on the festival season and rural growth trends. 

“Indian market will also take cues from timeline and comments on FED tapering and movement in global stock market. The risk of a third wave and its possible impact on the economy remains,” added Kurian. 

IT, Realty in focus

 

IT stocks remained in focus today after Accenture reported a robust set of numbers and outlook.

On the sectoral front, IT and Realty recorded the highest gains. 

Nifty IT was up 0.78 per cent, while Nifty Realty was up 1.50 per cent. Nifty Auto also gained and closed 0.54 per cent higher. 

Meanwhile, Metals, PSU Bank, Healthcare and FMCG recorded significant losses. Nifty Metal was down 2.10 per cent while Nifty PSU Bank was down 1.83 per cent. Nifty Healthcare Index was down 1.49 per cent, while Nifty FMCG was down 1.10 per cent. 

Broader market under pressure

 

Broader markets witnessed profit-booking with Nifty Midcap 50 closing 1.06 per cent lower. Nifty Smallcap 50 ended flat, up 0.14 per cent. 

The S&P BSE Midcap was down 1.16 per cent, while the S&P BSE Smallcap was down 0.30 per cent. 

The volatility index rose 1.92 per cent to end at 16.92.

 

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