Domestic markets continued to trade at their peak level despite the broader term turning into the red with FMCG, IT, Media and realty stocks underperforming. Sensex and Nifty 50 traded near their fresh historic highs driven by sharp buying in banking and financial stocks.
Except for banking and financial stocks, all other sectoral indices were in the red on NSE index.
Bank Nifty and Nifty Financial Services skyrocketed a whopping 2.3% and 2.6%, respectively.
On the other hand, on NSE, the FMCG, IT and Media index tumbled nearly 1% each. Nifty Realty slipped by 2%. While other sectoral indexes also traded lower.
At around 1.54 pm, Sensex was trading at 54,396.62 up by 573.26 points or 1.07%. Nifty 50 was performing at 16,268.60 higher by 137.85 points or 0.85%.
In the early deals, Sensex has clocked a new 52-week high of 54,440.80 and Nifty 50 has jumped to a new all-time high of 16,290.20.
Nifty 50 gainers were - HDFC surging 5% followed by ICICI Bank climbing 3.5%, while Kotak Bank and SBI jumped more than 3% each. HDFC Bank rallies 2.5%.
Nifty 50 underperformers were - Titan dipping 2% followed by Grasim and Sun Pharma diving 1.7% and 1.6% respectively. Tata Motors and Tata Consumer Products plunged over 1% each.
Investors focus has also shifted on RBI who will begin their three-day monetary policy meet from today onward for deciding key rates. The final print of the monetary policy will be presented on August 06.
Markets participants are expecting another status quo in policy interest rates as inflation pressure concerns still pertain from the second wave of the pandemic. It is expected that RBI will hold on to a 4% repo rate as there is little room to move about monetary policies broadly on a global front as higher commodity prices and increasing global rates amid the Covid-19 recovery bequeaths serious implications on production costs. Also, a possible third wave trajectory in the coming months leaves no choice but to have a wait and watch method.
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