Global cues help Nifty clock record closing, Sensex up 151 pts; Dixon Tech soars 64%
It was a historic day for the market as the Nifty50 ended at fresh record closing high on Monday, tracking positive global cues on easing of geopolitical tensions. All eyes are on two-day Federal Reserve monetary policy meeting that will begin on Tuesday.
The 50-share NSE Nifty rallied 67.70 points to 10,153.10 while the 30-share BSE Sensex was up 151.15 points at 32,423.76, which is 263 points away from its record high of 32,686.48.
Experts expect the rally to continue for a while despite rich valuations. However, if September quarter earnings disappoint then sharp correction is likely, they feel.
“Continued inflow in domestic funds, benign interest rate environment, stable currency coupled with favorable global cues is driving markets higher. Anxiety in global markets over North Korea has tapered off,” Gautam Duggad, Head- Research, Motilal Oswal Institutional Equities said.
He believes while valuations are not euphoric, they are rich versus long period averages and therefore support from earnings pick up is critical to sustain these valuations, going forward.
On the global front, European markets were higher as global investors returned to perceived riskier assets amid cooling geopolitical tensions. France’s CAC, Germany’s DAX and Britain’s FTSE were up 0.3 percent each at the time of writing this article. Asian markets closed higher, following positive lead from Wall Street.
Back home, the broader markets continued to outperform benchmarks as the Nifty Midcap ended at fresh record closing high for third consecutive session, up 0.7 percent on positive breadth.
All sectoral indices ended in green. Nifty Bank closed above the 25,000 level for first time since August 2, up 0.82 percent at 25,046.90.
Auto index was the leading gainer, up 1.2 percent followed by FMCG, IT and Metal.
Bharti Infratel was biggest gainer among Nifty 50 stocks, up 4 percent on likely tower sale deal.
L&T, HUL, Vedanta, IndusInd Bank, Eicher Motors, Bajaj Auto and Indiabulls Housing were prominent gainers among largecaps, up 2-4 percent followed by Reliance Industries, HDFC Bank and ICICI Bank that ended with half a percent gains.
ITC, ONGC, SBI, Tata Steel, TCS, Sun Pharma and Tata Power ended with marginal losses.
Among new listings, Dixon Technologies ended with hefty premium today, rising nearly 64 percent to Rs 2,891.55 against issue price of Rs 1,766 while Bharat Road Network was up 1.7 percent at Rs 208.45 against IPO price of Rs 205.
In broader space, Tinplate, TVS Electronics, VIP Industries, Titan Company, Jubilant Fooworks, Liberty Shoes, Graphite India, HEG, Prakash Industries, Vascon Engineers, BF Utilities, DHFL, Exide Industries, JK Tyre and Apollo Tyres rallied 2-20 percent.
Jaiprakash Associates, Religare Enterprises, Jaypee Infratech, Indiabulls Real and Divis Labs fell 3-5 percent.
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