Equity benchmark indices opened with firm gains on Tuesday and made fresh highs for a second day
Sensex Today: Equity benchmark indices opened with firm gains on Tuesday and made fresh highs for a second day, brushing off losses across other global equities. The BSE Sensex rose 300 points to a new high of 69,307 and the NSE Nifty50 gained 120 points to top 20,800.
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ICICI Bank, M&M, HDFC Bank, Axis Bank, HUL, SBI led gains on the Sensex, rising up to 1 per cent. BPCL was the top Nifty winner. On the flip side, HCLTech, Infosys, SBI Life, NTPC and Bajaj Finserv were among the top frontline losers.
The BSE MidCap and SmallCap indices held nominal gains of up to 0.2 per cent each.
Nifty IT was the only sectoral index that held losses, down 0.6 per cent. Realty pocket was also relatively weak while Nifty PSU Bank and Nifty Bank rose by 0.6 to 0.9 per cent.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The super Monday which delivered a 418 point rally in the Nifty is unlikely to be repeated with the same ferocity in the coming days. But the market construct stays bullish. The massive institutional buying of above Rs 7000 crores yesterday is a reflection of institutional confidence in the Indian market.
It is important to understand that FPIs have reversed their selling strategy and have been consistent buyers during the last 7 days. There is accumulation happening in the frontline banking stocks. This, along with short covering and reasonable valuations, will keep this segment strong.The market has the potential to go up by another 5% in the next many weeks. Beyond that valuations will get stretched inviting correction in the market.”
Global Cues
Asian stocks slipped to three-week lows on Tuesday while bonds and the dollar steadied as investors tempered expectations for cuts to US interest rates and waited on U.S. jobs data.
Tokyo stocks opened lower on Tuesday after falls on Wall Street ahead of key US jobs data due later in the week.The benchmark Nikkei 225 index was down 0.45 percent, or 150.51 points, at 33,080.76 in early trade, while the broader Topix index slipped 0.09 percent, or 2.09 points, to 2,360.56.
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US stocks ended lower on Monday, interrupting last week’s rally, as investors turned cautious ahead of employment data due this week that could alter expectations that the Federal Reserve will cut interest rates early next year.
