Indian stock market touched an all time high for the third consecutive session on Wednesday. The S&P BSE Sensex jumped 143.64 points or 0.26 per cent to hit 56,102 on August 25. Similarly, the Nifty50 also started in the positive territory at 16,676, up 142.15 points, or 0.40 per cent on Wednesday. Broader markets, midcap and smallcap indices opened over half a percent higher each on August 25.
Most gains were seen in metals, PSU banks, energy and auto stocks on August 25. At 1011 hours IST, Kotak Bank, Bajaj Finserv, Tata Steel, Bajaj Finance, TCS, Reliance were the tops boosts for the 30-share BSE Index. Bajaj Electrical was the biggest gainer and the scrip rose 7.71 per cent when market had opened. On the other hand, ICICI, Hindustan Unilever, Bharti Airtel and Larsen Turbo were among the biggest loser on BSE Sensex on August 25.
The Tata Motors was the biggest gainer on Nifty50, whose scrip rose by 3.2 per cent to Rs 288.80. Hindalco, HDFC Life, Adani Ports, Bharat Petroleum, Coal India, JSW Steel, ONGC, Tata Steel and Indian oil stocks also increased between 1-2.6 per cent. On the flipside, Titan, Asian Paints, HCL Technologies, Tech Mahindra, Bharti Airtel, Dr Reddy’s Labs were among the top losers.
The markets are trading well above the Rs 16,600 level which is a positive sign. We should scale higher to levels closer to Rs 16,800-16,850. Dips or intra day corrections can be considered as buying opportunities. Rs 16,400 is a good support for the index and as long as that holds, there is no threat to the current trend, said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
“In India market momentum and sectoral rotation are taking the indices higher. When the market leader IT Index takes a breather, Bank Nifty surges taking the Nifty forward. An important development in the banking space is HDFC bank bouncing back smartly. HDFC bank has the potential to regain its leadership position,” Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services said.
Positive Cues Drove Up The Market
Indian domestic market opened on the positive note driven by positive cues from the global market and fast-paced Covid-19 vaccination journey. The picking up vaccination and falling COVID-19 cases in India are the main factors the has been driving market up this week. India may entering in the endemic stage of COVID-19, WHO’s chief scientist Saumya Swaminathan said on Thursday. This statement sent positive ripples across the markets.
The Heng Seng Index began at 25,930.05, up 202.13 points or 0.79 per cent on Wednesday. Similarly, the market in Japan were flat on Wednesday. Wall Street also reported fresh record highs on Tuesday after US government had given full approval to Pfizer-BioNTech Covid-19 vaccine.
“US equities extended gains with S&P 500 and Nasdaq recording fresh highs. Notably, formal full approval by the USFDA for COVID-19 vaccine manufactured by Pfizer-BioNTech lifted investors’ confidence. Full approval indicates faster vaccination in the country, which is important to contain recent rise in delta variant Coronavirus cases. New home sales increased by 1 per cent YoY to 7.08 lakh, which was slightly higher than consensus estimate of 7 lakh. Further, 10-Year treasury yield soared by 4 bps to 1.29 per cent, while dollar index currently hovers around 93,” Binod Modi, Head Strategy at Reliance Securities said.
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