Indian market witnessed a strong opening which took benchmark indices to record highs in opening trade on Monday. The S&P BSE Sensex rose over 200 points to hit a fresh record high of 32,320.86 while Nifty50 surged to a life high of 9,982.05.
The rally was broad based as 156 stocks on the BSE surged to fresh 52-week highs on the BSE which include names like Sundaram Finance, RIL, HCL Technologies, Saregama, Wipro, Hindalco, Tinplate, Manappuram Finance, Jindal Saw etc. among others.
Among the 100 stocks, almost 49 stocks hit fresh record highs which include names like Bajaj Finserv, Britannia Industries, DMart, Uflex, Deepak Fertilisers, Sunil Agro Foods, Vinati Organics Ltd etc. among others.
The S&P BSE Sensex closed 216 points higher at a fresh closing high of 32,245 while Nifty50 ended 51 points higher to end at a fresh closing high of 9,966.40.
After closing flat for the week ended July 21 with slight positive bias, Sensex opened with a small gap on the upside which took the index to a fresh lifetime high.
The S&P BSE Bankex also hit a fresh record high on Monday led by gains in Punjab National Bank, Yes Bank, Bank of Baroda, SBI, ICICI Bank, Federal Bank, Axis Bank, and HDFC Bank etc. among others.
The Nifty50 too was not far behind. The index opened with a small gap on the upside but the underlying momentum took the index to a fresh record high of 9982.05 just 18 points short of magical five digit mark of 10,000.
The rally was broad based and more than 70 stocks hit a fresh 52-week high on the NSE which include names like Britannia Industries, RIL, Heritage Foods, Birla Corp, Rushil Décor, Tata Investments, Repro India, Hindalco etc. among others.
The index is just a few points away from its 4-digit journey to a 5-digit journey. Recently, the index has rallied by more than 25 percent in the last eight months from its December 2016 bottom of 7,893 to recent highs.
“The recent rally in Nifty50 is supported by the lower volatility and rising participation from DIIs. So, liquidity is supporting the market and stock specific action is likely to be there,” Chandan Taparia, Derivatives and Technical Analyst at Motilal Oswal Securities told Moneycontrol.
“However, it seems that 10K is just a mark and market may continue to score high by looking its positive macro factor. We have next major event on 2nd August and that is the RBI policy meet. Market players have the expectation of rate cut and that could even provide the liquidity to the system,” he said.
This market high is different than other highs as this time volatility is lower with rising Put Call Ratio and lower volatility is ruling out any major correction in the market.
The index may continue to attract buying interest at lower levels which could keep valuation at elevated levels because in the last eight months many have missed the bus and every small decline would provide the fresh opportunity if any happen.
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