Sensex on Monday gained 486.81 points to zoom past 49,269 to reach its all-time record high. Nifty too in tandem is just shy of 15,000 by gaining 137.50 points to close to an all-time high of 14,484.75. A total of 19 Nifty Stocks hit fresh 52-week highs which include stocks like Tata Motors, GAIL, Cipla.
Among the major gainers were IT indices like Tata Motors, HCL, Infosys, HDFC, and Wipro while Tata Steel, Bajaj Finance, Bajaj Finserve, L&T were in the red. Talking about sectors, the IT index rose to 3%, Auto Index rose to 2.6%, and FMCG gained 1% along with Pharma. Sectors that were losers are metal and PSU Bank with each shedding 1%.
The bullish rally was led by the IT sector indices which were backed by solid firm earnings results. The rally was further fuelled by a strong Q3 earnings preview, optimistic expectations around Union Budget 21, and inflow of foreign funds. However, small and mid-cap stocks remained under pressure for the most part of Monday.
Head-Strategy at Reliance Securities, Binod Modi spoke to news agency PTI and said that the domestic equities remained bullish and helped the benchmark indices register fresh highs thanks to robust earnings performance by TCS and D-Mart.
In his statement, Modi also stated the following, “Continued improvement in COVID-19 recovery rates and the announcement of vaccination process from January 16 offered comfort to markets. Further, expectations of a sharp recovery in corporate earnings led by a sustained rebound in key economic data may propel the market to witness fresh highs in the near term.”
He also added that FPI (foreign portfolio investors) flow may remain in favourable state given the state of the global economy and the weakening of the dollar. Additionally, Modi also said that domestic equities can witness another pre-Budget rally in the weeks to come considering optimistic expectations.
According to exchange data, FPIs were the net buyers in the capital market with purchases of shares amounting to Rs. 6,029.83 crore.