Macro data helps Sensex zoom past 55,000 mark
The Nifty breached the 16,500 level, closing at a fresh peak of 16,529.10
MUMBAI: The BSE Sensex vaulted above the 55,000-mark for the first time on Friday as investors remained in risk-on mode amid favourable macroeconomic data and growth optimism. Index heavyweights TCS, RIL, Infosys and HDFC twins saw robust buying, while pharma stocks slipped. Rallying for the second straight session, the 30-share Sensex jumped 593.31 points or 1.08% to its new all-time high of 55,437.29. It touched an intra-day record of 55,487.79.
Similarly, the broader NSE Nifty breached the 16,500 level, advancing 164.70 points or 1.01% to its fresh closing peak of 16,529.10. It surged to a record of 16,543.60 during the day.
TCS was the top performer among the Sensex components, spurting 3.22%, followed by L&T, Bharti Airtel, HCL Tech, Tata Steel, Bajaj Auto, Reliance Industries and HDFC Bank.
On the other hand, Powergrid, Indusind Bank, Dr Reddy’s, Indusind Bank, Bajaj
Finance, NTPC and Tech Mahindra were among the laggards, skidding up to 1.28%. During the week, the Sensex rallied 1,159.57 points or 2.13%, while the Nifty soared 290.90 points or 1.79%.
“Sustained rebound in IT followed by recovery in financials and consumers aided benchmark indices to defy weak cues from Asian markets and scale fresh records,” said Binod Modi, head—strategy at Reliance Securities.
IT stocks remained in focus throughout the week and investors lapped-up quality IT names due to sustained double-digit revenue growth visibility backed by strong deal wins, he added. “Domestic main indices raised the bar, registering new highs, bolstered by favourable economic data and a strong performance by large caps like defensive sectors such as IT, FMCG and telecom.
“Investor sentiments were boosted as retail inflation eased to 5.59% in July from 6.26% in June owing to softening food prices. Moreover, industrial production rose by 13.6% YOY in June on account of good performance by manufacturing, mining and power sectors,” said
Vinod Nair, head of Research at Geojit Financial Services. Sectorally, BSE telecom, teck, capital goods, IT, energy and consumer durables indices rose up to 1.80%, while realty, healthcare and utilities ended in the red. Broader BSE midcap and smallcap indices underperformed the benchmark to end up to 0.06% lower.
Asian markets remained under pressure amid China’s regulatory crackdown on companies and rising Covid-19 cases in the country. Bourses in Shanghai, Hong Kong, Tokyo and Seoul ended in the red.