Flagship equity indices the Sensex and the Nifty closed at record closing highs on July 15 as investors shrugged off concerns about rising inflation and took comfort from the US Fed's signal that tapering of pandemic-era stimulus was still distant.
The market remained in the green throughout the session and the Sensex and the Nifty scaled their fresh peaks of 53,266.12 and 15,952.35, respectively, in intraday trade. The BSE Smallcap index, too, hit its fresh record high of 26,422.78.
Eventually, the Sensex closed 255 points, or 0.48 percent, higher at 53,158.85, while the Nifty settled with a gain of 70 points, or 0.44 percent, at 15,924.20.
The BSE midcap and smallcap indices closed 0.31 percent and 0.43 percent higher, respectively.
"As global investors digest inflation data and the Fed commentary, Dalal Street bulls were seen betting on economic recovery as IT stocks continue to power the indices to new highs," said S Ranganathan, Head of Research, LKP securities.
"The market seemed in no mood to oblige investors waiting on the sidelines for a correction, as sector rotation played its part today as capital goods made a smart comeback across market capitalisation. The broader market was buzzing with action across cement, real estate and pharma names."
Neeraj Chadawar, Head - Quantitative Research, Axis Securities, said dips should be utilised to build positions in the recommended themes.
Rising inflation, the dollar index, rising concern over delta variant and the management commentaries post Q1 would be the near-term monitorable indicators for the market, he said.
Sectors & stocks
Nifty Realty emerged as the top sectoral gainer, closing 4.20 percent higher, followed by Nifty IT that rose 1.29 percent. Nifty auto, down 0.40 percent, media, down 0.35 percent, PSU bank, down 0.33 percent, and pharma, which ended 0.27 percent lower, closed in the red.
Realty stocks have been gaining as investors anticipate a good demand. “After spending close to a decade in limbo, the real estate sector is back with a bang and the COVID-induced lockdowns just showed how necessary it was to have a place as their ‘own home,’” said Gopal V Kavalireddi, head of research at FYERS.
Better earnings and a brighter growth outlook are keeping IT stocks higher.
"Sentiments were upbeat as a private report stated that IT spending in the country is expected to grow at 8 percent to $92.7 billion in 2021. The growth at 8 percent is a shade less than the world average of 8.6 percent and global spending on information technology is estimated to come at $4.2 trillion," said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi Shares & Stock Brokers.
More than 500 stocks, including Infosys, Larsen & Toubro, Larsen & Toubro Infotech, L&T Technology Services, Tata Elxsi, Tata Steel, Tech Mahindra, Wipro, Birlasoft, Coforge, Cyient, Mindtree, Mphasis, OFSS, Bajaj Finserv, ACC, Ambuja Cements, Apollo Hospitals, InterGlobe Aviation (IndiGo), IRCTC, Manappuram Finance, Marico and Sobha, hit their 52-week high intraday on BSE.
Some 500 stocks, including Suzlon Energy, Datamatics Global Services, Trigyn Technologies, Kanpur Plastipack, Aditya Vision, Dhani Services, IVP, White Organic Retail and Inspirisys Solutions, hit upper circuits in intraday trade on BSE.
Technical view
Nifty formed a bullish candle on the daily charts as the closing was higher than opening levels. Experts feel 15,855 is expected to remain a crucial level for the index to extend the rally.
The market witnessed strong gains, overcoming the resistance level of around 15,900, experts said.
As there is a breakout on the price chart, Mazhar Mohammad of Chartviewindia.in advised traders to remain long with a stop below 15,850 and look for an initial target of 16,200 levels.
Sustaining above 15,900 is the key factor from a short-term perspective to gain momentum and extend the rally until 16,200, said Ashis Biswas, Head of Technical Research at CapitalVia Global Research.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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