Festive cheer lights up Nifty as it hits record high. How D-Street reacted

Moneycontrol News

The market celebrated early Diwali at Dalal Street on Friday as the 50-share NSE Nifty hit a fresh record high of 10,179.15, backed by banks.

Earlier on September 19, the index had hit a record high of 10,178.95.

The Sensex was up 251.83 points or 0.78 percent at 32,434.05 and the Nifty rose 68.70 points or 0.68 percent to 10,165.10.

Lot of positive momentum was seen ahead of the festive season and optimism was reflected in the buying counters across.

Index heavyweights continued to rule the charts and held on to the gains, even as the broader markets underperformed.

While the Nifty was trading in the flat region in the afternoon, the Sensex had posted gains of over 200 points.

Experts believe a combination of factors such as earnings optimism, macro data, global cues, and technical factors worked in favour of the Street, helping it post huge gains.

Here’s a look at how experts reacted to the move.

Prakash Diwan, Altamount Capital Management

“A lot of heavy lifting is being done by index heavyweights. The likes of Bharti Airtel and TCS have also joined in,” Diwan told CNBC-TV18 in an interview.

Having said that, it must be noted that not all stocks from the index are participating in the rally. “Nifty still has 20 stocks declining. The stocks comprising advances is what is making the difference and you could ahead see the Nifty cross 10250 or so,” he said, adding that Nifty constituents are going to contribute more to the market more. Diwan also cautioned on mid and microcaps. It could be a trap, he believes.

Ajay Srivastava, CEO of Dimensions Consulting

Srivastava told CNBC-TV18 that the market has risen against all odds. “The key thing here is that new players are taking the lead, indicating that the rally is much more broad-based and large caps are taking the lead,” he told the channel.

Reiterating the previous argument, he said that with healthy players taking the market up, the focus should be on domestic stories as that is where consolidation is happening. Having said that, “this is just the beginning. You will see dramatic improvement in largecap valuations,” he added.