Sensex, Nifty scale record highs mirroring global cues

MUMBAI: Indian benchmark indices surged to record highs on Monday, mirroring a rally in global markets as investors wagered on improved trade relations and more fiscal stimulus under a Joe Biden presidency in the US.

Rising for the sixth straight session, the BSE Sensex vaulted 704.37 points or 1.68 per cent to close at its lifetime peak of 42,597.43. Intra-day, it touched its all-time high level of 42,645.33.

The previous closing record for the Sensex was 41,952.63, hit on January 14, 2020. Similarly, the broader NSE Nifty climbed 197.50 points or 1.61 per cent to finish at its all-time high of 12,461.05. It hit its record level of 12,474.05 during the day.

IndusInd Bank was the top gainer in the Sensex pack, spurting 4.95 per cent, followed by Bharti Airtel, ICICI Bank, Axis Bank, PowerGrid, Tata Steel, Titan and HDFC Bank.

Only three index constituents closed in the red - ITC, Maruti and Bajaj Finserv, slipping up to 0.66 per cent. World markets marched higher after Biden was declared the winner in the tightly-contested US election, though President Donald Trump has yet to concede the race.

Toning down of trade war rhetoric and a likely sharper focus on combating the COVID-19

pandemic in the US augur well for equities, analysts said.

“Firm global cues and a clear majority to favourite Democratic Party in the US election took main benchmark indices to all time high. The rally in the domestic market was also led by banking and finance stocks on improved business outlook post Q2 results, end to moratorium and bounce back of economic activities.

“Broader market has shown under-performance compared to headline peers as investors feel safer chasing heavyweights during high market levels. We expect more stimulus measures are required to boost the economy and announcements regarding the same from the government is expected in the near future that can further accelerate our domestic market,” said Vinod Nair, Head of Research at Geojit Financial Services.

BSE telecom, bankex, power, metal, finance, consumer durables and tech indices rallied up to 3.81 per cent, while healthcare ended in the red.

World markets marched higher after Biden was declared the winner in the tightly-contested US election, though President Donald Trump has yet to concede the race