Sensex hits 48,000 mark for the first time ever after vaccine approvals

Sensex hits 48,000 mark for the first time ever after vaccine approvals

NEW DELHI: Metal and IT stocks were in heavy demand on Monday amid encouraging macro and micro data taking benchmark indices to fresh highs. Vaccine approvals by Indian regulator also lifted risk appetite.

Record GST collections, and good steel and auto sales numbers have also given a glimpse of stellar economic recovery. Moreover, declining dollar is also leading to massive fund flows in Indian equities.

“Positive economic data like all-time record GST collections (Rs 1.15 lakh crore) and impressive auto numbers particularly in crucial segments like HCVs & MCVs in December augur well for the markets. Low-interest rate regimes in the developed world and the declining dollar are positives for capital inflows into EMs like India. The risk is something triggering capital outflows which can cause a sharp correction in markets,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Factors driving markets

-Vaccine approvals: India approved two Covid-19 vaccines over the weekend, produced by British firm AstraZeneca and homegrown Bharat Biotech. India plans to start vaccination drive within the next two weeks.

-More restrictions likely: Global coronavirus cases continued to climb, with British Prime Minister Boris Johnson hinting at tougher lockdown restrictions, while Japan considered declaring a state of emergency for capital Tokyo and surrounding areas.

-End of relief check hopes: The US Senate ended a push by Democrats to increase COVID-19 financial relief checks from $600 to $2,000, a change sought by President Donald Trump, after the effort was blocked by Republicans.

How are bluechips doing

After opening in the green, benchmark indices maintained their lead. At 9.53 am, BSE flagship Sensex was up 238 points or 0.50 per cent to 48,107. NSE benchmark Nifty followed and rose 73 points or 0.52 per cent to 14,091.

“14,100 can pose a resistance for the Nifty. Traders should consider booking profits at the current juncture and trail thereafter. We have a good support at 13,900 and if we close below this level, there could be a correction. Hence it is advised to be cautiously long with strict stops,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.

In the 50-share pack Nifty, ONGC was the biggest gainer, up 2.90 per cent. Tata Motors, Hindalco, Tata Steel, Bajaj Finserv, GAIL, BPCL, Grasim Industries, Eicher Motors and TCS were among other gainers.

Asian Paints was the top loser in the pack, down 0.61 per cent. Hero Motocorps, Reliance Industries, Titan, Bajaj Auto, Kotak Mahindra Bank and M&M were other losers in the pack.

Broader markets

Broader market indices traded with gains outperforming their headline peers in morning trade. Nifty Smallcap added 0.88 per cent while Nifty Midcap climbed 1.15 per cent. Broadest index on NSE, Nifty 500 was up 0.67 per cent.

Vodafone Idea, Ashok Leyland, SAIL, BEML, Indiamart Intermesh and Sterlite Tech were among major gainers from the space while Vakrangee, Alok Industries, CanFin Homes, Future Retail, Oberoi Realty and Syngene were under selling pressure.

Global markets

After a slow start, MSCI’s broadest index of Asia-Pacific shares outside Japan swung 0.8 per cent higher to hit another all-time peak. South Korea climbed 2 per cent to a record, led by the chip and auto sectors, while Chinese blue chips added 0.3 per cent.

E-Mini futures for the S&P 500 were steady after also touching a record high. EUROSTOXX 50 futures were flat, while FTSE futures rose 0.4 per cent.

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