Closing Bell: Sensex, Nifty end at record closing high as IT, metal stocks shine

Taking Stock | Bulls Take Charge Of D-St; Sensex, Nifty Close At Record High

Among sectors, IT, metal and pharma indices rose 1-2 percent, while selling was seen in the FMCG and banking names.... Read More

Markets extended gains in a range-bound session, in continuation to prevailing trend. After the initial uptick, the benchmark hovered in a range till the end however healthy buying in sectors such as metals, IT and auto kept the participants busy. Further, the anticipation of faster economic recovery and vaccination drive picking up pace too boosted sentiments. Consequently, the Nifty ended at 15,799 levels, up by 0.4%. The broader markets ended in positive in the range of 0.1-0.4%.

Markets will first react to the IIP numbers in early trade on Monday. Going ahead, the progress of the vaccine drive and updates on the monsoon will be closely watched by the participants for cues. While the trend is bullish, the underperformance of the banking pack is certainly hurting the sentiment however we expect the bias to improve next week. Meanwhile, traders should focus on other sectors and use intermediate dips to add the selected stocks.

The focus now turns on the big final event, the Fed's meeting next week, although there may not be much of a shift in rhetoric. If Fed hints that tapering discussion may be closer than before, a knee-jerk spurt may be witnessed in USDINR spot, but Fed won't rush into tightening the stimulus, so overall the dollar will remain soft.

The USDINR spot is hovering around 73 zone, and fears of rising international crude oil prices is leading to importers demand. In spot, the immediate resistance lies around 73.20-73.30, only a consistent trading above that can push prices towards 73.60-73.75 zone while 72.70-72.50 will act as a crucial support.

Taking cues from the strength of the mother market US where S&P 500 touched record highs, Sensex rose to record highs touching 52641.53 in early morning trade. The rally was led by IT majors TCS, Infosys & HCL Tech with RIL also contributing to the rally. The banking stocks have been on the backfoot on concerns of rising NPAs.

The fact that the US markets have shrugged off inflation fears have given ammunition to the bulls. However, the rally in some mid and small-caps of unproven track record is a cause of concern.

Indian rupee erased intraday gains and ended near the day's low at 73.07per dollar,amid buying seen in the domestic equity market with benchmark indices touching record levels.

It opened higher at 72.94 per dollar against previous close of 73.06 and traded in the range of 72.91-73.09.

Benchmark indices ended at record closing high on the back of buying seen in the IT, metal and pharma names.

At close, the Sensex was up 174.29 points or 0.33% at 52474.76, and the Nifty was up 61.60 points or 0.39% at 15799.40. About 1744 shares have advanced, 1368 shares declined, and 138 shares are unchanged.

Tata Steel, JSW Steel, Coal India, Dr Reddy’s Labs and Hindalco were among major gainers, while losers included Axis Bank, SBI Life Insurance, IndusInd Bank, L&T and HDFC Life.

Among sectors, IT, metal and pharma indices rose 1-2 percent, while selling was seen in the FMCG and banking names.

The market witnessed some lackluster movement and an attempt to hold the support level around 15800. Sustaining above 15800 levels, the market expects to gain momentum, leading to an upside projection of 15900 levels. The market expects 15900 and will act as resistance but technical factors are aligned to support the positive momentum to continue.

Lumax Industries' Q4 consolidated net profit rose 38.8% at Rs 22.7 crore against Rs 16.3 crore and revenue was up 30.2% at Rs 504.4 crore versus Rs 387.3 crore, (YoY).

Lumax Industries was quoting at Rs 1,670.00, up Rs 37.90, or 2.32 percent on the BSE.

Ipca Laboratories has acquired further 13.09% of the paid-up equity share capital of M/s. Trophic Wellness Private Ltd.

With this acquisition Trophic Wellness has become a subsidiary of the company and now holds 52.35% of the paid-up equity share capital of TWPL, company said in the release.

Ipca Laboratories was quoting at Rs 2,040.40, up Rs 3.40, or 0.17 percent on the BSE.

Gold is currently trading near $1900 after ECB meeting and supported by weakness in dollar index and global bond yields.

The ECB raised its 2021 Eurozone inflation forecast to +1.9% from a previous forecast of +1.5%. Meanwhile, Comments on Thursday from ECB President Lagarde were supportive of gold demand. She said a premature end of fiscal stimulus would harm the recovery and that any talk of exiting the ECB's PEPP bond-buying program is “too early now” and will come in "due course."

Gold prices are likely to face stiff resistance near $1896-$1920, while immediate support level is seen around 20 days EMA at $1878 and 50 days EMA at $1841

The stock market is solely focused on the future. Hopes of a quick economic revival post unlock and expectation of large number of adult population vaccinated in 2021, are keeping markets excited. Q4 FY21 earnings have been encouraging, even after adjusting for the low base of March 2020.

The broader market is very healthy. It is very likely that the top 10 heavyweights of the Sensex, which have been dormant for some time, will begin to participate. Already RIL has resumed its up move after a six month lull. This will add to the strength of Indian equities.

Supreme Court (SC) rejects plea seeking loan moratorium, interest waiver, and financial reliefs from the government, reported CNBC-TV18.

Petitioners has sought relief from SC on account of second wave of pandemic.

Benchmark indices are trading higher in the final hour of the trade with Nifty around 15800.

The Sensex was up 166.39 points or 0.32% at 52466.86, and the Nifty was up 53.70 points or 0.34% at 15791.50. About 1587 shares have advanced, 1329 shares declined, and 112 shares are unchanged.

Nifty IT and Metal indices added 1-2 percent, while banks remained under pressure.