Bourses scale fresh peak as curbs ease, cases fall
The Nifty rose 0.36% to 15,869.25, while the Sensex climbed 0.42% to 52,773.05
Domestic benchmark indices ended at record highs on Tuesday, as declining Covid-19 infections prompted many states to re-open businesses, with a rally in broader markets also helping the sentiment.
The blue-chip NSE Nifty 50 index rose 0.36% to 15,869.25 and the benchmark S&P BSE Sensex climbed 0.42% to 52,773.05 at close.
Many Indian states eased coronavirus restrictions on Monday, including the national capital New Delhi, where authorities allowed shops and malls to open as the number of new cases dropped to the lowest in more than two months.
India on Tuesday reported 60,471 new infections, the lowest since March 31.
Market, after opening on a positive note, rallied through the first half led by gains in heavyweights such as Reliance, HDFC and a sharp recovery in financials. Declining Covid-19 cases and gradual unlocking by states lifted investor sentiments.
The breadth of the market turned positive with 1,943 stocks advancing, 1,280 declining and 145 remaining unchanged on the BSE.
As many as 565 securities hit the upper circuit and 185 the lower circuit; 530 hit their 52-week high while 24 touched a 52-week low.
Binod Modi, Head Strategy at
Reliance Securities said, “Domestic equities remained firm and steady with benchmark indices Nifty and Sensex recording fresh all-time highs. A rebound in financials, FMCG and Reliance Industries supported market today. Further, positive cues from global markets also aided sentiments.”
Asian Paints, HDFC Life, Axis Bank, ICICI Bank and Hindustan Unilever were the top gainers on the Nifty 50; while Divi’s Labs, Adani Ports, Coal India, Tata Motors and Bajaj Finserv were the top laggards.
Vinod Nair, Head of Research at Geojit Financial Services, said, “Indian bourses continued its gaining streak tracking optimism from global peers, which is despite the rising inflation concerns.”
“The global market is eagerly awaiting the two-day Fed policy meeting’s decision to see if the Central Bank would signal any change in policy. While domestic CPI jumped to 6.3% in May breaching the RBI’S comfort zone on account of higher food & energy prices, which is expected to ease due to the opening of the economy,” added Nair.
Adani Group stocks were trading mixed after the company, in its clarification rejected a media report stating that the accounts of three foreign investor funds that own Adani Group stocks had been frozen.
Adani Ports and Special Economic Zone Ltd, one of the top losers on the Nifty 50 today closed 1.56% lower.
Adani Enterprises Ltd managed to recover ending 1.62% higher.
Adani Power, Adani Transmission and Adani Total Gas hit the lower circuit at 5%.
On the sectoral front, all indices except Nifty Pharma, Metal, and PSU Bank closed in the green.
Nifty Pharma remained under pressure through the day ending 0.88% lower. PSU Bank stocks also recorded losses in the second half and closed 0.26% lower. Nifty Metal was down 0.05%.
Meanwhile FMCG, Realty and financials gained. Nifty Bank was up 0.85% at closing while Nifty Financial Services was up 0.57%. Nifty Private Bank was up 1.07 per cent.
Nifty FMCG was up 0.73% while Nifty Realty was up 1.32%.