Sensex surpasses historic 60,000 mark; Nifty closes above 17,800 amid profit booking

Benchmarks hit new highs on Friday as the BSE Sensex crossed the all-time high of 60,000 on Friday, with Nifty within 50 points of 18,000 at the open as the bull run continued. Easy liquidity, positive global indices due to the relatively anticipated FOMC meeting continued to enthuse investors.

However, the market remained volatile throughout the day amid profit taking, with benchmarks ending in marginal gains and broader markets coming under increased selling pressure.

After breaking above the all-time high of 60,000, the BSE Sensex, registering a new all-time high of 60,333, closed at 60,048.47, up 163.11 points or 0.27%. It recorded an intraday low of 59,946.55. The Nifty 50, which nearly missed the 18,000 mark with a new all-time high of 17,947.65, closed at 17,853.20, up 30.25 points or 0.17%. It hit an intraday low of 17,819.4.

The m-cap of the BSE-listed shares stood at ₹2,6118,340.21 crore at the close.

Ashishkumar Chauhan, MD & CEO, BSE said, “Sensex, reaching 60,000 today for the first time on September 24, 2021, is an indicator of India’s growth potential, as well as how India emerges as a global leader during the COVID period in addition to global monetary expansion and relaxed fiscal policies adopted by global powers.

“The Indian markets are considered to be the best performing markets in the world over the last 18 months of the Covid period due to shrewd policies and implementation by government, private sector and everyone else involved. Many other investors are also joining stock markets directly or indirectly through mutual funds thanks to market automation, new age brokerages and low interest rates in India. The rise in stock prices has been widespread over the recent period,” added Chauhan.

Naveen Kulkarni, Chief Investment Officer, Axis Securities, commenting on this iconic event, said: “We could see many more positive market surprises over the next couple of years as we enter a positive cycle of growth. earnings trajectory. the functional economy in the upcoming festival season and continued earnings momentum in the second quarter of FY22 are the near-term triggers for the market. »

Expanse favors decliners

However, the breadth of the market turned negative, with as many as 1,940 stocks declining on BSE, versus 1,329 stocks rising while 153 were unchanged. Additionally, 284 stocks reached the upper circuit compared to 172 stocks stuck in the lower circuit. Additionally, 244 stocks hit a 52-week high and 20 hit a 52-week low.

Even as the BSE Sensex crossed the historic 60,000 mark, experts warned investors of short-term volatility.

Motilal Oswal, MD and CEO, Motilal Oswal Financial Services Limited, said: “The stock market had a historic day today with Sensex touching 60,000 for the first time, driven by large caps and many heavyweights in the world. index reaching new heights. The domestic market rally is fueled by positive global signals, strong FII/DII inflows, good corporate earnings, declining Covid-19 cases, optimistic corporate commentary and a low cost of capital.

“Amid buoyant sentiment and increased activity, valuations have reached high levels and demand a steady delivery of earnings expectations. Given high valuations, intermittent volatility cannot be ignored – however, we expect the positive momentum to continue on the back of improving economic activity and a recovery in corporate earnings,” Oswal added. .

According to Santosh Meena, Head of Research at Swastika Investmart Ltd, investors should remain cautious on the parabolic movement of the past few days as a short-term correction cannot be ruled out in the coming days.

“Global indices like the Dow Jones and Dax are near critical resistance and could experience a correction from here. We are in a strong uptrend and are outperforming global markets, while some return to the average can be seen in the coming days, where rising crude oil prices and soaring US bond yields could lead to near-term volatility,” Meena said.

According to Shibani Kurian, Senior EVP & Head-Equity Research, Kotak Mahindra Asset Management Company, market movement here is likely to be determined by any contagion effects from China’s Evergrande crisis, Q2 corporate results -FY22 and festival comments on the seasons and rural growth trends.

“The Indian market will also take inspiration from the timeline and comments on the FED cut and the evolution of the global stock market. The risk of a third wave and its possible impact on the economy remains,” Kurian added.

IT, Real estate in brief

IT stocks remained in focus today after Accenture released a strong set of numbers and outlook.

On the sector front, IT and real estate recorded the strongest gains.

Nifty IT rose 0.78%, while Nifty Realty rose 1.50%. Nifty Auto also gained and closed up 0.54%.

Meanwhile, metals, PSU Bank, healthcare and consumer staples recorded significant losses. Nifty Metal was down 2.10% while Nifty PSU Bank was down 1.83%. The Nifty Healthcare index was down 1.49%, while Nifty FMCG was down 1.10%.

An expanded market under pressure

Broader markets saw profits with Nifty Midcap 50 closing down 1.06%. Nifty Smallcap 50 ended flat, up 0.14%.

The S&P BSE Midcap was down 1.16%, while the S&P BSE Smallcap was down 0.30%.

The volatility index rose 1.92% to end at 16.92.