Sensex crosses 48K mark
Broader market indices outperform benchmarks
The market bull run has extended into the new year, with the Sensex crossing yet another milestone of
48,000 points for the first time ever.
The benchmark index closed at a new all-time high of 48,176 on Monday, gaining 307 points, or 0.64 per cent, on more positive news flow and third quarter earnings expectations.
The highest ever GST collections for December at Rs
1.15 lakh crore and auto sales data for December added to the positive momentum, analysts said.
The Nifty-50 index gained
114.40 points to close at a new all-time high of
14,132.90.
The broader market outperformed with the BSE Mid-cap Index rising 1.42 per cent and the BSE
Small-cap, 1.3 per cent.
Encouraging earnings outlook for the IT sector led to buying in IT stocks, The BSE IT Index gained 2.71 per cent.
The rise in metal prices in the last quarter has improved metal stocks’ outlook, and the BSE Metal Index gained 5.34 per cent. All other sectoral indices also closed with gains, barring the BSE Bankex which fell by 0.15 per cent.
Foreign portfolio investors were net buyers to the tune of Rs 1,843.22 crore.
“We expect international investors to accelerate the diversification of the geographical exposure of their portfolios into Asia. The Covid-19 crisis has laid bare the long-term challenges in developed economies now worsened with a further build-up of government debt,” said Sanctum Wealth Management in its outlook for 2021.
At the same time with a huge bull run in progress brokerages were cautious of the future market course.
“We are cautious and selective on Indian equities given elevated valuations; street earnings growth expectations are high, we await signs of sustained recovery. The Nifty Index is trading at around 22 times one-year-forward earnings, which is 23 per centg higher than its average over the past 10 years. Strong inflow of foreign liquidity and expectations of a strong revival in growth and corporate earnings have driven up market valuations,” said Saion Mukherjee and Neelotpal Sahu, equity analysts at Nomura Financial Advisory Services.