Bulls maintain momentum for 6th day amid vaccine hopes; Nifty stops short of 14K

Bulls maintain momentum for 6th day amid vaccine hopes; Nifty stops short of 14K

NEW DELHI: Buying into auto and metal heavyweights was more than enough to lift benchmark indices to fresh highs, extending the rally to the sixth straight day as hopes of a vaccine nod in India grew.

UK authorities have given a go-ahead to AstraZeneca’s vaccine, which has raised the possibility of Indian nod to the same very soon. The optimism has improved the spirits of bulls in India. India VIX, however, edged higher again, now trading above 21-level.

The 30-share pack Sensex climbed 133.14 points or 0.28 per cent to 47,746.22. Its broader peer, NSE Nifty advanced 49.35 points or 0.35 per cent to 13,981.95.

“Domestic sentiment is upbeat, expecting a nod for Oxford-AstraZeneca Covid vaccine usage in India. Growth sectors like auto, realty and metal led the rally while defensives like pharma continued to remain under pressure. Although the market is at its most expensive valuation level, FPIs continue to pump in funds and roll the Indian market higher on a daily basis,” said Vinod Nair, Head of Research at Geojit Financial services.

Market at a glance:

  • Airline stocks end flat as India extends UK flight ban till Jan 7
  • Rites gains 1% as company announces Rs 5 per share dividend
  • Kalpataru Power gains over 3% after winning orders worth Rs 900 cr
  • JMC Projects advances 4% as co gets orders worth Rs 698 cr
  • AstraZeneca gains nearly 3% after its vaccine gets UK nod

Among the bluechip names, UltraTech Cement was the top gainer, up 4.42 per cent. Its parent Grasim Industries, along with Shree Cement, Bajaj Finance, Eicher Motors, UPL, Maruti Suzuki and M&M were other gainers.

“We reiterate our bullish yet cautious stance and suggest using dips to add quality stocks. On the domestic front, auto sales data and economic indicators would be a key monitorable”

— Ajit Mishra, Religare Broking

IndusInd Bank was the biggest loser among Nifty constituents. Sun Pharma, Axis Bank, SBI, Bharti Airtel, TCS, GAIL, Cipla, Infosys, Indian Oil, ITC, Bajaj Finserv and ICICI Bank were other losers.

Broader market indices also registered gains, in line with their headline peers. Nifty Smallcap added 0.70 per cent and Nifty Midcap advanced 0.22 per cent. Nifty 500, the broadest index on NSE, rose 0.37 per cent.

Sobha, Wockhardt Pharma, EID Parry, SAIL, Whirlpool of India and Ramco Cements were top gainers from mid and smallcap indices, climbing in the range of 4-9 per cent.

Coromandel International, REC, Adani Enterprises, Firstsource Solutions, BEML and Welspun India were major losers from broader market space, falling in the range of 1-6 per cent.

Sectoral matrix was mixed on the NSE. Nifty Auto was the top gainer, up 1.34 per cent, closely followed by Nifty Realty that added 1.29 per cent. Nifty FMCG, Nifty Financial Service and Nifty Media were other gainers. Nifty PSU Bank was the top loser, down 0.23 per cent.

Market breadth was in favour of gainers as 1,671 stocks ended in the green, while 1,282 names settled with cuts. As many as 264 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 44 names hit 52-week lows, mostly from the microcap space. About 400 stocks hit upper circuit limits and 191 lower circuit limits.

European markets were also trading with gains. London-based FTSE was up 0.10 per cent, while Paris and Frankfurt added 0.11 per cent and 0.10 per cent, respectively. In Asia, barring Japan, Thailand and Indonesia, all markets closed with gains. Hong Kong added the most at 2.18 per cent.

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