A hope of massive stimulus in the US and short covering by the bears in the domestic market has lifted the spirit of investors. Along with this, good Q3 earnings so far and FII buying makes prospects look good for the market said analysts.
The 30-share pack Sensex added 393.83 points or 0.80 per cent to inch close to 50,000 mark. It ended at 49,792.12 for the day. Its broader peer NSE Nifty advanced 123.55 points or 0.85 per cent to 14,644.70.
“An optimistic western market aided the Indian market to touch lifetime highs with new buying in segments like auto, IT and PSU bank. So far, the Q3 results are better than forecasted and this has led to continued buying across sectors. Ahead of Joe Biden’s inauguration as President, the US market is on an upbeat mood with high expectations of a big US stimulus,” said Vinod Nair, Head of Research, Geojit Financial Services.
Investors got richer by Rs 1.51 lakh crore as the total market cap of BSE-listed companies rose to Rs 197.70 lakh crore.
Market at a glance:
- Bajaj twins end in the green ahead of Q3 earnings
- Tata Motors continues to be on a roll, gains over 6 per cent.
- IPO watch: Indigo Paints subscribed 1.7x, IRFC 3.4x so far.
- Nifty IT top sectoral gainer, up nearly 3 per cent; FMCG top loser.
- 263 stocks hit fresh highs: L&T, MRF, TaMo, TCS, Eicher Motors, Bajaj Auto, Adani Ports top names.
“Volatility is still high on the stock-specific front. We feel it’s prudent to continue hedged positions and prefer index majors over the others.”
Among the bluechip names, Tata Motors was the top gainer, rising 6.09 per cent. Adani Ports, Wipro, Tech Mahindra, Maruti Suzuki, UPL, Asian Paints, Reliance Industries and M&M were the other gainers.
Power Grid was the top loser in the Nifty pack, falling 2.10 per cent. Shree Cement, NTPC, GAIL, HDFC Bank, ITC, SBI Life Insurance, Indian Oil and Sun Pharma were others that ended in the red.
Broader market indices closed with cuts inline with their headline peers. Nifty Smallcap gained 0.59 per cent and Nifty Midcap rose 1.04 per cent. Nifty 500, the broadest index on NSE, advanced 0.81 per cent.
Apollo Tyres, Mindtree, MRF, Just Dial, Affle India and BASF were top gainers from mid and smallcap indices, climbing in the range of 4-8 per cent.
Alembic Pharma, L&T Financial holdings, Emami, CSB Bank, KEI Electronics and Indiabulls Real Estate were major losers from broader market space, falling in the range of 1-5 per cent.
Barring FMCG, all sectoral indices on NSE closed with gains. Nifty Auto, Nifty IT and Nifty PSU Bank rose more than 2 per cent each. Nifty Media and Nifty Metal were other major gainers.
Market breadth was in favour of gainers as 1,582 stocks ended in the green, while 1,492 names settled with cuts. As many as 263 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 36 names hit 52-week lows, mostly from the microcap space. About 360 stocks hit upper circuit limits and 252 lower circuit limits.
European markets were trading with gains. London-based FTSE was up 0.12 per cent while Paris and Frankfurt were up 0.55 per cent and 0.57 per cent. In Asia, markets in Thailand, Taiwan and Japan closed in the red while others registered gains.