Closing Bell: Nifty ends at fresh record high, Sensex at closing high; pharma drags

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Taking Stock | Indices Starts June Series On A Strong Note, Nifty Hits Fresh Record High

Except for pharma and IT, all other sectoral indices ended in the green. BSE Midcap and Smallcap indices ended marginally lower.

Ajit Mishra, VP - Research, Religare Broking:

Markets started the new expiry with modest gains and made a new record high as well. After witnessing a gap-up opening, the index traded in a narrow band but managed to settle around the day’s high. It was the healthy buying in heavyweights like Reliance and HDFC Bank which helped the index to maintain the positive bias.  

Amongst the benchmark indices, the Nifty ended with gains of 0.6% at 15,436 levels. On the flip side, sectors such as healthcare and consumer durables traded lackluster. The broader markets underperformed and ended lower in the range of 0.1-0.5%.   
 
Markets reclaimed the record high after three months and the Reliance's performance was the major highlight today. Going ahead, we expect this trend to continue with intermediate corrective phases. Traders should align their positions in line with the move and avoid contrarian trades.

Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services:

Next week is going to be very eventful for USDINR, with RBI MPC outcome and the US NFP data. RBI MPC will continue to maintain its accommodative stance but the focus will be on the outlook of the central bank over the spill-over effect of the second wave of COVID-19 on the economic growth. So we can expect some volatility in spot ahead of that. Technically, there has been a sharp fall in USDINR spot and we expect the new trading range to be 72-73.

Vinod Nair, Head of Research at Geojit Financial Services.

Constant fall in US dollar is driving the Indian equity market in addition to the falling infection rate. The sustenance of the rally is supported by the recent improvement in foreign investment with the stabilizing US yield and drop in the dollar index. INR is regularly appreciating against USD.

Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments:

The markets have been in a jubilant mood since the start of trade today. It has closed well above the resistance of 15300 and should be headed higher to levels closer to 15600. As long as 15000 holds, traders can utilize any dip to accumulate long positions for higher targets.

Rupee Close: 

Indian rupee ended higher by 15 paise at 72.43 per dollar, amid buying saw in the domestic equity market with Nifty hitting fresh record high. It opened 10 paise higher at 72.48 per dollar against previous close of 72.58 and traded in the range of 72.32-72.49.

Ashis Biswas, Head of Technical Research at CapitalVia Global Research:

After a day of lackluster movement, the market witnessed a positive trend in today's activity. The expected levels of the market are likely to be in the range of 15250 and 15600, and it's going to crucial for the short-term market scenario to sustain above the 15250. The momentum indicators like RSI and MACD supporting today's momentum and indicate potential upside from the current market level.

Jateen Trivedi, Senior Research Analyst at LKP Securities:

Rupee traded weak on the back of subdued moves in the dollar index. Fed stance of dovish outlook keeps dollar weakness going. Higher crude prices kept the rupee rise at check around 72.50. With the capital market at lifetime highs, funds inflows keep rupee strength. Going ahead rupee can be seen in range 72.40-72.80.

S Ranganathan, Head of Research at LKP securities:

Markets remained in the green as investors basked in the glory of the $3-trillion market cap which was achieved with ease thanks to the broad-based rally across market capitalisation. With FIIs being net sellers during April & May the appetite shown by domestic investors is getting reflected in the buoyancy across the market breadth. 

Today's trade was led by the big boys - Reliance & HDFC twins as we did see profit-taking across midcaps post-RBI comments on the consequences of liquidity infusion during the Pandemic.

Market Close: Indian benchmark indices ended higher with Nifty started June F&O series on strong note, hitting fresh record high amid positive global cues.

At close, the Sensex was up 307.66 points or 0.60% at 51422.88, and the Nifty was up 97.80 points or 0.64% at 15435.70. About 1394 shares have advanced, 1674 shares declined, and 138 shares are unchanged.

Reliance Industries, Grasim Industries, Adani Ports, M&M and Coal India were among the top gainers on the Nifty, while losers included Sun Pharma, Shree Cements, Bajaj Finserv, Dr Reddy's Labs and ICICI Bank.

Except for pharma and IT, all other sectoral indices ended in the green. BSE Midcap and Smallcap indices ended marginally lower.

Prabhudas Lilladher on Redington:

Redington delivered strong result in Q4FY21 with led by strong growth in India business. In India, there is strong demand for security, collaboration, mobility and cloud. Though there may be near term softness in India due to COVID, management expects strong pent up demand led recovery in 2HFY22. 

We have increased our target multiple to 9X (earlier 8X) and arrived at revised target price of Rs 267. Currently, Redington trades at 7x/6x FY22E/23E at an EPS of Rs 26/Rs 29.7 for FY20E/21E respectively. Maintain Buy.