IT STOCKS DRIVE INDICES TO HIT RECORD HIGHS

MUMBAI: Domestic markets returned to winning ways on Friday after two days of declines as strong buying in IT stocks ahead of TCS’ results propelled benchmarks to fresh lifetime highs amid a bullish trend overseas. A recovering rupee and foreign fund inflows further buoyed sentiment, traders said. The 30-share BSE Sensex sprinted 689.19 points or 1.43% to close at a record 48,782.51. It touched an all-time peak of 48,854.34 during the session.

Similarly, the broader NSE Nifty rallied 209.90 points or 1.48% to close at its new lifetime high of 14,347.25.

During the day, the index scaled a record level of 14,367.30.

Maruti was the top gainer in the Sensex pack, rallying 5.94%, followed by Tech Mahindra, Infosys, UltraTech Cement, M&M, PowerGrid and NTPC.

On the other hand, IndusInd Bank, Bharti Airtel, SBI, ITC, HDFC and Bajaj Finance slipped up to 1.37%. During the week, the Sensex rallied 913.53 points or 1.90%, while the Nifty soared 328.75 points or 2.34%.

According to Binod Modi, head-strategy at Reliance Securities, growing expectations of stronger fiscal stimulus in the US after Congress confirmed President-elect Joe Biden’s victory fuelled equities globally.

“Markets completely downplayed earlier concerns of reversal of lower tax rates in the scenario of Democrats taking control of both the houses of Congress,” he added.

A sustained rebound in key economic data for December 2020 and likely commencement of vaccination drive shortly in India augur well for domestic equities, he said, adding that the underlying strength of domestic equities is intact, which essentially can propel benchmark indices to witness fresh highs in coming weeks.