Sensex surges 3000 points this month, Nifty ends at new high: 10 points
Premium- Some states have announced relaxation in covid-related restrictions and analysts expect further easing in the coming weeks
Indian stock markets finished on a strong note today, extending this month's record-breaking rally as a declining trend in daily COVID-19 cases buoyed investor sentiment. BSE Sensex climbed over 500 points to 51,937 while Nifty finished at record close of 15,582, up nearly 1%. The government will today later in the day announce fourth-quarter GDP data.
Here are key highlights from today's market performance:
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1) Sensex has risen more than 3,000 points this month buoyed by expectations of further easing of restrictions amid falling covid cases.
2) Meanwhile, fresh COVID-19 cases continued to fall. Today, India reported its lowest daily increase in new infections in 50 days at 152,734.
3) Reliance Industries Ltd and ICICI Bank Ltd were the top boosts to the Nifty 50, both gaining about 3% each. Reliance had ended 6% higher on Friday.
4) Among the laggards, Mahindra and Mahindra Ltd closed down 4.5% after the country's biggest tractor maker on Friday forecast "low single digits" growth for the industry for the current year.
5) "We have successfully achieved the 15600 target and the index is all set to approach its next target of 15900. There could be a pause or bouts of profit booking in the interim but that should be utilized to accumulate long positions for higher targets," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
6) "As long as the market closes above the 15300 level, the trend remains bullish and opportunities to buy on corrections should be maximized," he added.
7) Deepak Jasani, Head of Retail Research, HDFC Securities, said: "Nifty rose for the seventh consecutive session reaching and closing at fresh record highs. It has closed the month of May with a 6.5% gain almost matching the February gains. Overall advance decline ratio was also mildly positive. 15635 is the next resistance for the Nifty while 15470 is the support."
8) Ajit Mishra, VP - Research, Religare Broking Ltd, said: "Markets will react to the GDP data in early trade on Tuesday i.e. June 1. Besides, participants would keep a close watch on auto sales figures. Meanwhile, the last leg of earnings season is also expected to induce stock-specific volatility. Some states have announced relaxation in restrictions and we expect further easing in the coming weeks."
9) "Amid all this, we reiterate our bullish yet cautious stance on markets and suggest aligning the positions according to the prevailing uptrend," he added.
10) Rohit Singre, Senior Technical Analyst at LKP Securities, said: "Fresh breakouts, fresh highs and fresh closing seen in today’s session as index managed to closed a day at 15575 with gains of nearly one per cent and formed a bullish candle on daily chart. Index decisively closed above 15500 zone which strength the overall structure. Now any dip will be again buying opportunity as long as we are sustaining above 15500 zone which is immediate and strong support on the downside followed by 15400 zone with immediate hurdle 15600-15700 zone. Fresh move can be possible if managed to trade above 15600 on the immediate basis."
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