Rising for the ninth straight session, the Sensex closed above the 48,000-mark for the initially time on Monday as the investor sentiment received a increase just after the government authorized two coronavirus vaccines. Strong worldwide cues also helped propel the markets greater. The Sensex rallied by 307.82 points (.64%) to close at 48,176.8 when the Nifty jumped 114.4 points (.82%) to close at 14,132.9.
Robust acquiring in IT, metal and automobile stocks drove the markets. IT stocks had been rallying in anticipation of robust third quarter outcomes. According to Edelweiss Securities, Q3 outcomes of IT businesses would reinforce their ‘bottom of tech upcycle’ thesis. The markets also rallied more than the positive sentiment amongst investors just after the Centre granted emergency approval to two Covid-19 vaccines.
Market specialists think that ‘quality’ and ‘growth’ would be the stock themes for the rest of the year. Additionally, the markets will react to the Budget.
Navin Kulkarni, chief investment officer, Axis Securities, mentioned: “The focus will be on the BFSI sector and management commentary on the stress challenges. Apart from Q3 earnings, the Union Budget will be an important event.”
Foreign portfolio investors on Friday purchased stocks worth $67.4 million and domestic institutional investors purchased stocks worth $9.2 million. The calendar year 2020 saw foreign fund inflows worth $23.3 billion, the highest given that 2012.
Foreign brokerages have began the year with a bullish view on the Nifty50 index. A positive worldwide backdrop, along with the anticipation of a cyclical recovery, has helped them retain a bullish view on the Indian markets. Jefferies mentioned, “December 2021 Nifty target of 15,800 offers a total return of 14%. Our favourite (bond yield – earnings yield) metric shows that the valuation is close to averages.”
Foreign markets also rallied on Monday. The markets in Germany, France and the UK had been up amongst 1.65% and 2.7% in early trade. The markets in China, Taiwan and South Korea had been up amongst .86% and 2.47%. The markets rallied in the hopes of a powerful recovery in 2021. Additionally, the European markets soared just after the Brexit deal was confirmed.
The futures and solutions segment saw a turnover worth Rs 24.11 lakh crore and the money marketplace segment witnessed a turnover worth Rs 63,621.86 crore. This is against the six-month typical of Rs 24.1 lakh crore in the F&O segment and Rs 54,497 crore in the money marketplace.