With concerns over North Korea tapering off amid stronger rupee and rekindling of buying interest, markets traded with strength on Monday. Equities and bonds rallied in the backdrop of increasing domestic flows and abundant liquidity, despite sluggish economic growth and weak earnings.
The 30-share BSE Sensex rose for an eighth day hitting a six-week high, following a record-breaking Wall Street session. The index closed at 32423.76, after surging 151.15 points, or 0.47%.
Nifty, on the other hand, crossed a new milestone hitting a record closing high at 10153.10, after going up 67.70 points, or 0.67%. The broader index broke previous record closing of 10114.65 touched on August 1. The NSE Nifty 50 Index rose 0.7%. NSE Bank Nifty moved past the 25000 mark to hit an all-time time of 25105.35, as optimism rubbed off.
Automobile counters witnessed hustle on expectations of festive sales. Bajaj Auto gained the most among Sensex components, rallying 3.57%.
Dixon Technologies staged a impressive debut on the bourses climbing 63.81%. HUL, L&T, Coal India, Cipla, Dr Reddy’s and Hero MotoCorp, were among other gainers on Sensex.
Buying momentum by local investors continued to hold the market up. India has received Rs 20,000 crore of inflow in domestic mutual funds in August 2017 which is an all-time high. Additionally, initial public offerings (IPOs) of insurance companies may bring increased liquidity.
Gautam Duggad, head- research, Motilal Oswal Institutional Equities, told DNA Money, valuations are rich vs long period averages, if not euphoric. Hence, support from earnings pick-up is critical to sustain these valuations.
“We prefer large-caps to mid-caps owing to valuation gaps. Earnings visibility and valuation comfort are key determinants for our preferred ideas,” Duggad said.
Going forward, market participants have glued eyes on the two-day monetary policy meeting of US Federal Reserve that will begin on Tuesday.
The market capitalisation stood at Rs 1,36,76,465 crore.
The India VIX dropped 2%. The S&P BSE MidCap Index ended with gains of 0.7%.
REVIVAL OF SENTIMENT
- Nifty crossed a new milestone hitting a record closing high at 10153.10
- Automobile counters witnessed hustle on expectations of festive sale
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Automobile counters witnessed hustle on expectations of festive sales. Bajaj Auto gained the most among Sensex components, rallying 3.57%.
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