The news brought cheers to the equity market which is already rallying, thanks to surplus liquidity in the system. However, frothy valuations has emerged as a reason of concern which is keeping volatility high.
The 30-share pack ended the day at 47,353.75, rising 380.21 points or 0.81 per cent. Its broader peer, NSE Nifty, climbed 123.95 points, or 0.90 per cent, to 13,873.20. Both indices closed at record highs.
Investors grew richer by Rs 1.84 lakh crore as the total market cap of BSE-listed firms rose to Rs 187.02 lakh crore.
“Indian market started on an upbeat note in the final week of the year owing to positive global cues. We can expect the momentum to be maintained as investors are focusing more on the positive side of events and are not worried about the peak valuations and lockdowns triggered by the new strain of virus,” said Vinod Nair, Head of Research at Geojit Financial Services.
Market at a glance:
- Dixon Tech surges 6% on getting contract to make Motorola phones
- Tips Industries spikes 13% after inking global licensing deal with Facebook
- Pharma sole sectoral loser; realty biggest sectoral gainer
- India VIX adds over 2%, reflecting nervousness on Street
- 264 stocks hit 52-week highs: Cipla, Kotak Bank, TCS, Tata Power, Mindtree, SAIL, Cadila and JSW Steel top names
Among the bluechip names, JSW Steel was the biggest gainer, up 5.83 per cent, thanks to the fourth round of price rise in December by steel companies. Tata Motors, SBI, Titan, HDFC Life Insurance, L&T and GAIL were other gainers.
“Meanwhile, we suggest maintaining a positive yet cautious stance and avoiding contrarian trades”
The top losers in Nifty was HUL that fell 0.47 per cent. It was followed by Sun Pharma, Cipla, Shree Cement, Britannia, Dr Reddy’s Labs, Bajaj Finserv, M&M and Tech Mahindra.
Broader market indices also registered gains, outperforming their headline peers. Nifty Smallcap added 1.68 per cent and Nifty Midcap advanced 1.19 per cent. Nifty 500, the broadest index on NSE, rose 0.97 per cent.
SAIL, Coromandel International, Indiabulls Housing Finance, Indiabulls Real Estate, HEG Infra and Dixon Technologies were top gainers from mid and smallcap indices climbing 6-9 per cent.
Varun beverages, Castrol India, AU Small Finance Bank, P&G Health, Balrampur Chini Mills and Mishra Dhatu Nigam were major losers from broader market space, dipping 1-4 per cent.
Sectorally, Nifty Realty was the top gainer, up 2.59 per cent, closely followed by Nifty Metal that added 2.56 per cent. Nifty Bank, Nifty Financial Service and Nifty Media were other major gainers. Nifty Pharma was the only loser, down 0.27 per cent.
Market breadth was in favour of gainers as 2,019 stocks ended in the green, while 1,000 names settled with cuts. As many as 264 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 41 names hit 52-week lows, mostly from the microcap space. About 440 stocks hit upper circuit limits and 211 lower circuit limits.
European markets were also trading with gains. London-based FTSE was up 0.10 per cent while Paris and Frankfurt added 1.10 per cent and 1.53 per cent. In Asia, barring Thailand, Strait Times and Hang Seng, all markets closed with gains. Indonesia added the most at 1.41 per cent.