Sensex scales Mt 50,000! Global cues lift it 300 points

Sensex scales Mt 50,000! Global cues lift it 300 points

NEW DELHI: 34 years. This is what it took Sensex to hit the 50,000 mark since its launch. And, in all this time, stock market investors have amassed a wealth of nearly Rs 200 lakh crore. Let that sink in for a minute.

On Thursday, thanks to the continued buying by domestic and foreign investors, especially in Reliance Industries, financials and IT stocks lifted benchmark indices to fresh highs, rising on stimulus hopes.

“The smooth transition in the US and President Biden’s healing speech lifted the US markets to record highs. This feel-good factor is likely to spread to other markets too. Sensex @50000 is a reality. FII inflows which had declined a bit during the last few days, have again turned strong. Apart from robust FII inflows, another major factor supporting the rally is the impressive corporate results which started in Q2 and continue in Q3,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

“While enjoying this bull run, investors should not be carried away by the euphoria. At high levels, markets are vulnerable to corrections.”

Factors driving markets

  • Biden takes oath: US President Joe Biden signed a string of executive orders, shortly after being sworn in on Wednesday to jump-start the government’s response to the coronavirus pandemic.
  • WHO to approve vaccines: The World Health Organization plans to approve several Covid-19 vaccines from Western and Chinese manufacturers in coming weeks and months.
  • ECB eggs on: The European Central Bank will keep its easy money policy unchanged on Thursday but hold the door wide open to further stimulus as the spreading second wave of Covid-19 dims an already weak outlook.
  • Inflation rise in UK: British inflation gathered speed in December, starting what is expected to be a climb this year as pandemic-fighting measures, Brexit and a recovery in the economy combine to push up costs for consumers and businesses.

How are bluechips doing

After opening in the green, benchmark indices strengthened their lead. At 9.38 am, BSE flagship Sensex was up 311 points or 0.62 per cent to 50,102. NSE benchmark Nifty followed and rose 84 points or 0.57 per cent to 14,729.

In the 50-share pack Nifty, Bajaj Finserv that came out with its earnings was the biggest gainer, up 4.26 per cent. Bajaj Finance, Tata Motors, UPL, Reliance Industries, HCL Tech and IndusInd Bank were among other gainers.

Adani Ports was the top loser in the pack, down 0.91 per cent. TCS, HDFC Bank, GAIL, HDFC, JSW Steel, Tata Steel, Coal India and Hindalco were other losers in the pack.

Broader markets

Broader market indices traded with gains in-line with their headline peers in the morning trade. Nifty Smallcap added 0.72 per cent while Nifty Midcap climbed 0.59 per cent. Broadest index on NSE, Nifty 500 was up 0.60 per cent.

Future Retail, Crompton Greaves, Aditya Birla Fashion Retail, JK Tyres, Banco India and Majesco were among major gainers from the space while Everest Industries, Shakti Pumps, DHFL, Sun TV, GlaxosSmithKline and Glenmark Pharma were under selling pressure.

Global markets

MSCI’s broadest index of Asia-Pacific shares outside Japan touched record highs and was last up 0.85 per cent, with markets across the region posting gains.

Chinese blue-chips added 1.2 per cent, Australian shares climbed 0.69 per cent and Hong Kong’s Hang Seng breached the 30,000 level, rising 0.31 per cent.

Japan’s Nikkei was up 0.72 per cent, less than 1 per cent off three-decade highs reached last week.

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