What's pulling Nifty 50, Sensex to fresh record highs?

Nifty 50 scaled a fresh record high while the Sensex was sitting just at a kissing distance from its all-time high.

The benchmark indices extended their bull run, with the Nifty 50 as well as the Sensex scaling fresh record highs as of afternoon trade on December 27. While Nifty topped the 21,650-mark for the first time, the Sensex also surpassed 72,000 to scale a fresh all-time high.

While trading volumes were thin because of year-end holidays, sentiment mirrored the positive trend in global markets. On global level, benchmark indices in the US settled with gains overnight while those across Asia also inched higher today.

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In the last hour of trade, the Sensex was up 730 points or 1 percent at 72,066.26 while the Nifty traded 220 points or 1 percent higher at 21,661.

Despite slight profit booking in around mid-day, the two benchmarks managed to stage a bounceback to rise to the day's highs, extending their uptrend to the third session. This according to analysts highlights the bullish undertone in the market.

"The resilience of the market even in the holiday season, which is normally devoid of much action, is an indication of its underlying bullishness," said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Trend in the broader market also remained strong as the Nifty Smallcap 100 and the Nifty Midcap 100 traded 0.4 percent higher each.

Sectoral trends

All sectors except energy traded in the green. Gains were led by banking stocks, with the Nifty Bank index hitting a fresh record high after surpassing the 48,000-mark for the first time. Automobiles, IT, metals and PSU bank indices surged 1-2 percent.

On the other hand, FMCG and pharma indices were up 0.5 percent.

Fundamental view

"Despite Christmas festivities concluding, the market and Nifty may still have reason to celebrate. Nifty perma-bulls anticipate a Happy New Year, with the bullish theme centered around the 'Santa Claus Rally.' Historical patterns, driven by investors embracing cooling inflation euphoria and optimism about India's growth prospects, suggest a positive outlook," Prashanth Tapse, Senior VP (Research), Mehta Equities.

"The year-end window dressing theme is expected to support stocks this week, with Nifty's technical analysis pointing to an upside target of 21,593. Caution is advised only if Nifty slips below 20,976," Tapse added.

Technical view

"The Indian equity benchmark indices extended the robust market rally momentum. Overall, the market is leaning towards positive, and it looks like the year will end on a positive note," said Shrey Jain, founder and CEO SAS Online - a deep discount broker.

He also anticipates the Nifty 50 further higher in the coming sessions as it managed to decisively surpass its immediate resistance of 21,500 in today's session.

"On weekly expiry day, the mood for Bank Nifty has turned positive again as the index bounces back above 47,900. In today's trading, the 48,000 call strike has the highest open interest, indicating a potential barrier. But if Bank Nifty can stay above 48,000, it might move up to 48,500," Jain added.

Key Nifty gainers

Hindalco, Ultratech Cement, Bajaj Auto, Tata Motors and Bharti Airtel

Key Nifty losers

NTPC, Britannia, Tech Mahindra, Adani Enterprises and Hero Motocorp

Key Sensex gainers

Ultratech, Tata Motors, and JSW Steel

Key Sensex losers

NTPC, Tech Mahindra, and Wipro

Stock moves

Cement Stocks: Most cement stocks inched higher, capturing places on the top gainers list on both the Nifty and the Sensex following positive views from brokerage firm Nomura. The firm anticipates robust sales volume growth, improved pricing discipline, and the advancement of valuations to FY26. On that account, the firm upgraded Ultratech Cement, Dalmia Bharat, and Ramco Cement from 'neutral' to 'buy'.

RBZ Jewellers: The stock made a tepid debut on bourses listing at par with issue price. The stock started trading at Rs 100 on the NSE and BSE, against issue price of also Rs 100. However, follow-up buying helped the stock gain 5 percent.

Credo Brands Marketing (Mufti Menswear): The stock also made a lacklustre debut on the bourses listing with minor gains against its issue price of Rs 280. However, just like RBZ Jewellers, follow-up buying post listing aided an over 10 percent surge in the counter.

Happy Forgings: The Heavy forgings manufacturer showcased the best debuts among the for companies lined up for listing today. Shares of the company opened 18 percent higher on debut after its initial public offering was subscribed 82 times last week. Moreover, strong interest in the stock also lifted the stock an additional 4 percent higher post listing.

Also read |  D-St bulls charge again: Nifty scales fresh record high, eyes 22,000; Sensex up nearly 500 points

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