Sensex hits 48,000 mark for the first time ever after vaccine approvals
Record GST collections, and good metal and auto gross sales numbers have additionally given a glimpse of stellar financial restoration. Moreover, declining greenback can be resulting in huge fund flows in Indian equities.
“Positive economic data like all-time record GST collections (Rs 1.15 lakh crore) and impressive auto numbers particularly in crucial segments like HCVs & MCVs in December augur well for the markets. Low-interest rate regimes in the developed world and the declining dollar are positives for capital inflows into EMs like India. The risk is something triggering capital outflows which can cause a sharp correction in markets,” stated VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Factors driving markets
-Vaccine approvals: India authorized two Covid-19 vaccines over the weekend, produced by British agency AstraZeneca and homegrown Bharat Biotech. India plans to begin vaccination drive inside the subsequent two weeks.
-More restrictions seemingly: Global coronavirus instances continued to climb, with British Prime Minister Boris Johnson hinting at more durable lockdown restrictions, whereas Japan thought of declaring a state of emergency for capital Tokyo and surrounding areas.
-End of reduction verify hopes: The US Senate ended a push by Democrats to extend COVID-19 monetary reduction checks from $600 to $2,000, a change sought by President Donald Trump, after the effort was blocked by Republicans.
How are bluechips doing
After opening in the inexperienced, benchmark indices maintained their lead. At 9.53 am, BSE flagship Sensex was up 238 factors or 0.50 per cent to 48,107. NSE benchmark Nifty adopted and rose 73 factors or 0.52 per cent to 14,091.
“14,100 can pose a resistance for the Nifty. Traders should consider booking profits at the current juncture and trail thereafter. We have a good support at 13,900 and if we close below this level, there could be a correction. Hence it is advised to be cautiously long with strict stops,” stated Manish Hathiramani, proprietary index dealer and technical analyst, Deen Dayal Investments.
In the 50-share pack Nifty, ONGC was the greatest gainer, up 2.90 per cent. Tata Motors, Hindalco, Tata Steel, Bajaj Finserv, GAIL, BPCL, Grasim Industries, Eicher Motors and TCS had been amongst different gainers.
Asian Paints was the prime loser in the pack, down 0.61 per cent. Hero Motocorps, Reliance Industries, Titan, Bajaj Auto, Kotak Mahindra Bank and M&M had been different losers in the pack.
Broader markets
Broader market indices traded with positive aspects outperforming their headline friends in morning commerce. Nifty Smallcap added 0.88 per cent whereas Nifty Midcap climbed 1.15 per cent. Broadest index on NSE, Nifty 500 was up 0.67 per cent.
Vodafone Idea, Ashok Leyland, SAIL, BEML, Indiamart Intermesh and Sterlite Tech had been amongst main gainers from the house whereas Vakrangee, Alok Industries, CanFin Homes, Future Retail, Oberoi Realty and Syngene had been underneath promoting strain.
Global markets
After a gradual begin, MSCI’s broadest index of Asia-Pacific shares exterior Japan swung 0.8 per cent larger to hit one other all-time peak. South Korea climbed 2 per cent to a report, led by the chip and auto sectors, whereas Chinese blue chips added 0.3 per cent.
E-Mini futures for the S&P 500 had been regular after additionally touching a report excessive. EUROSTOXX 50 futures had been flat, whereas FTSE futures rose 0.4 per cent.
