There is no letting up the bullish sentiment as equity benchmarks sustain their gains and zoom to new highs on December 6, a day after closing at their highest levels. Positive trends across Asian markets also aided sentiment for Indian shares.
The Nifty and the Sensex hit fresh lifetime highs of 20,958.65 and 69,701.40. An hour before closing, the Sensex was up 405.26 points or 0.58 percent at 69,701.40, and the Nifty was up 94.40 points or 0.45 percent at 20,949.50.
Both the benchmarks are also poised to end the session at record closing levels.
"The fear of missing out (FOMO) continues to guide market sentiment, fuelled by foreign institutional investors' (FIIs) optimism and the BJP's recent electoral successes," Prashanth Tapse, Senior VP (Research), Mehta Equities, said.
Aditya Gaggar, Director of Progressive Shares, however, advised caution as the benchmarks have continued to soar despite overbought conditions.
According to Mandar Bhojane, research analyst at Choice Broking, the technical charts suggest that the Nifty may find support at 20,700, followed by 20,500.
"On the upside, 21,000 could pose as immediate resistance, succeeded by 21,200," he added.
Stocks and sectors
Information technology stocks saw strong buying interest on the back of the recent depreciation in the Indian rupee, which is expected to ease some margin pressure for the sector. Counters such as Wipro , Tata Consultancy Services and LTIMindtree rose around 2-3 percent.
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Index heavyweight Reliance Industries also rose over a percent following positive comments from brokerage firm CLSA, which has maintained a “buy” call on the stock. Gains in the stock supported the positive trend in the two benchmarks.
The Adani group stocks continued their winning run from the previous day following a report that a US agency found the accusations made by Hindenburg Research against the Gautam Adani-led power-to-port conglomerate to be irrelevant.
Adani Ports rose over 2 percent to emerge as one of the top gainers on the Nifty 50.
On the downside, profit-booking seeped into banking names like ICICI Bank and Axis Bank, along with Eicher Motors, after their stellar run in recent days. The three stocks were down 1-2 percent.
Also Read | CLSA downgrades Bajaj Auto, Hero Moto, Eicher Motors amid valuation concerns
Profit-booking in banking names pulled Nifty Bank into the red after it rose to a record high in the previous session.
The broader market also moved in tandem with the benchmarks, with Nifty Midcap 100 rising 0.4 percent and Nifty Smallcap 100 up 0.2 percent.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
Disclosure: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
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