NEW RECORD: Sensex ends at all-time high on closing basis

Market


Buoyed by late session gains, Indian stock markets ended higher today, with broader Nifty50 index closing at 18403 – its third highest close ever. Sensex rose 248 points to 61,872, its highest ever on a closing basis. Global stocks were mostly higher today Wall Street futures were higher on hopes of easing US-China tension after the American and Chinese presidents met at the G20 summit. That fed hopes for an easing of U.S.-Chinese tension over security, trade, technology and human rights.

“The strongest tailwind for equity markets globally is the peaking of inflation in the US and the possibility of a slower pace of rate hikes. In tune with this trend, CPI inflation in India, too, has declined to 6.7 % in October from 7.4 % in September. The decline in crude to $92 dollars is another positive. All these can take the Nifty to a new record, but in typical market characteristics, it may not happen when the consensus expects it to happen,” said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services. 

“A healthy trend in the market now is the slow accumulation in high quality large-caps. Sustained buying by the FIIs is supporting this trend. Some profit booking may be considered in mid and small-caps which have run up on good results,” he added. 

Data released on Monday showed that India’s annual retail inflation ease to 6.77% in October, from 7.41% in the previous month, data showed on Monday. However, that was higher than the 6.73% forecast by economists in a Reuters poll and the central bank’s 2%-6% target band.

Markets have turned risk-on in recent days, trading off a softer-than-expected US data print that many reckon will allow the Fed to raise rates in 50 basis-point increment, after three 75 basis-point hikes. That view was encouraged by Vice Chair Lael Brainard who said on Monday it would probably be “appropriate soon to move to a slower pace of increases.

“Indian markets opened on positive note following positive overall Asian markets. However the markets couldn’t sustain the gains post morning session. During the afternoon session the markets traded volatile with weakness in Metal and Capital Goods shares dragged key gauges lower, while buying in Auto and Telecom stocks helped markets to trade near neutral lines. During the closing session, some support also came from financial stocks which helped in markets to firmly trade in green,” said Narendra Solanki – Head Fundamental Research- Investment Services, Anand Rathi Shares & Stock Brokers on markets.

 

 

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