Indian stock markets touch new heights for 2nd day

  • IANS
  • Stock Market News
Indian stock markets touch new heights for 2nd day
Credit: © Reuters.

Chennai, Nov 29 (IANS) For the second day in succession, the Indian stock markets flared up with the Sensex of BSE and Nifty of NSE touching record highs on Tuesday.

The Sensex of BSE on Tuesday touched a record high of 62,877.73 points after opening at 62,362.08 points and touched a low of 62,362.08 points during the day.

The Sensex closed at 62,681.84 points, up by 177.04 points.

On Monday, the Sensex had closed at 62,504.80 points after hitting an all time high of 62,701.40 points.

At the NSE, the Nifty opened 18,552.45 points after previously closing at 18,562.75 points.

Then the Nifty rallied up to 18,659.75 points, touched a low of 18,552.15 points and closed at 18,618.05 points.

Naveen Kulkarni, Chief Investment Officer, Axis Securities said, "Indian markets closed in positive, even after witnessing some pullback in the second half of trade, after reaching record highs. Sectors that did well include FMCG, where the market is now pricing in lower pressure on gross margins as packaging and agri prices are expected to cool off from highs of Q2FY23. Metals also did well after Chinese regulators eased financing for property developers, a move expected to boost demand for metals."

"We expect Nifty50 to remain range bound in the near term but expect the broad markets to outperform as we believe that small and midcaps can catch up some part of their recent underperformance to large caps. Investments in the current environment should be stock specific, where investors should focus on good quality stocks with strong business models available at reasonable valuations," Kulkarni added.

Siddhartha Khemka, Head of Retail Research, Motilal Oswal (NS: MOFS ) Financial Services Ltd, said, "Domestic equities have showed strong character despite global headwinds as they gained for sixth consecutive day and make new highs. While global cues were negative at the start of the day due to agitations in China for its regressive COVID policies. Nifty opened lower but soon gained momentum to make fresh highs. The index finally closed with gains of 55 points at 18,618 levels. Action was seen in FMCG, Metals and Pharma Sector. Buying was seen in FMCG stocks on back of revival in rural demand and decline in oil prices.

"We expect market momentum to continue although the pace of gains may slow down given the run-up in last few days. Oil& Gas, auto, IT, & FMCG stocks have been supporting the Index with strong movement in heavyweights like Reliance (NS: RELI ). Auto stocks would be in focus ahead of the monthly sales data for Nov would be released. Expect banking, consumer and cement stocks to remain strong over the next few days," Khemka added.

"Indian markets opened on positive note following positive overall Asian markets on back of news China encouraging vaccinations for elder which is seen crucial to reopening the economy post sporadic lockdowns," said Narendra Solanki, Head Fundamental Research- Investment Services, Anand Rathi Shares & Stock Brokers.

Solanki said the sentiments remained optimistic as the data showed that foreign portfolio investors have infused funds worth Rs 32,344 crore in Indian stock markets so far in the month of November and became net buyers again.

"During the closing session almost all the major sectoral indices were trading in green except auto and realty which were trading marginally in red," Solanki said.

Deepak Jasani, Head of Retail Research, HDFC (NS: HDFC ) Securities, said the metal stocks seem to be coming back in favour as nationwide unrest in China over Covid curbs eased.

Broad markets however underperformed as buying action was limited to the top 100 odd scrips, Jasani said.

Continued foreign portfolio investors buying in India has boosted the mainline indices which may continue to do well for the next two months with some intermittent corrections.

According to Choice Broking, the Nifty crossed 18,650 for the first time, and maintained an uptrend for the sixth consecutive session, as well as higher highs for the fifth session in a row.

The Sensex rose 0.28 percent to 62,681.84, while the Nifty rose 0.30 percent intraday to 18,618.05.

The momentum is in favour of bulls, but after a sustained run-up over the last few days, some bouts of turbulence and consolidation are possible in the next sessions before a gradual march towards 18,800-19,000, with immediate support at 18,500 and key support at 18,400 levels, Choice Broking said.

--IANS

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