Indian markets hit fresh highs on December 4 after the Reserve Bank of India (RBI) revised upwards its GDP target for the financial year while holding the rates steady and maintaining its accommodative stance.
The BSE Sensex closed 446.90 points, or 1 percent, higher at 45,079.55, the first time it hit the 45,000-mark, and the Nifty was up 124.60 points, or 0.95 percent, at 13,258.50.
"RBI’s decision to keep policy rates unchanged and maintain an accommodative stance for the current and upcoming year is well taken by the market. The possibility for a further rate cut in the near term can be ruled out, considering the elevated levels of inflation. However, positively RBI has ensured ample liquidity support on a timely basis in the form of Open market operation, TLTRO and reverse repo,” said Vinod Nair, Head of Research at Geojit Financial services.
“Globally, renewed US stimulus negotiation and vaccine roll-out has underpinned optimism, this will help the domestic market to maintain its euphoria."
The Nifty Bank index jumped 2 percent, while metal, infra, pharma and FMCG indices rose 1 percent each.
Broader markets underperformed the benchmarks with BSE midcap and smallcap adding 0.4 percent each.
Adani Ports, ICICI Bank, Hindalco, UltraTech Cement and Sun Pharma were among the major gainers on the Nifty, Reliance Industries, Bajaj Finserv, HDFC Life, BPCL and HCL Tech were among the big losers.
Stocks & sectors
The BSE Bank index rose 2 percent, while FMCG, metal and realty indices were up 1 percent each.
A volume spike of more than 100 percent was seen in UltraTech Cement, ACC and Ambuja Cements.
Long buildup was seen in Canara Bank, Bharat Forge and Bosch, while short buildup was seen in ACC, Ambuja Cements and Torrent Power.
More than 250 stocks, including SAIL, Voltas, Escorts and Maruti Suzuki, hit a 52-week high on the BSE.
The Nifty formed a bullish candle on both the daily and the weekly scales and continued forming higher highs-higher lows from the fifth day.
"Now it has to continue to hold above 13,100 zone to witness an up move towards 13,400 levels, while on the downside, major support exists at 13,000 zones," Chandan Taparia of Motilal Oswal Financial Services told Moneycontrol.Disclaimer
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