Global cues, large caps lift equities, banking stocks shine
Bombay Stock ExchangeFile photo

Global cues, large caps lift equities, banking stocks shine

Mumbai, August 4, 2021

Positive global cues, along with hopes of a faster economic rebound, buoyed India's key equity markets to new record highs on Wednesday.

Initially, India's benchmark indices started on a positive note with the global sentiments intact towards positivity, completely ignoring the spread of Delta variant of COVID-19 around the world.

Among sectors, banks gained the most while realty and telecom stocks' prices' receded.

However, expensive valuations capped gains.

In the process, the S&P BSE Sensex hit an intra-day record level of 54,465.91 points and the Nifty50 touched a new high of 16,290.20 points.

The Sensex closed the day's trade at 54,369.77, higher by 546.41 points, or 1.02 per cent, from its previous close.

The Nifty50 on the National Stock Exchange closed at 16,258.80 points, higher by 128.05 points, or 0.79 per cent, from its previous close.

"Carrying on from the momentum of the previous day, Nifty opened gap up on August 4 and continued to inch up in the morning session... The indices made another record intra-day high and closed high," HDFC Securities' Head of Retail Research, Deepak Jasani said.

"Nifty rose with another gap up reflecting the pent-up demand in index heavyweights. Advance decline ratio, however, has turned very negative despite Nifty being up, suggesting profit taking in the broader markets. With other markets doing well, Nifty could continue to remain steady or up, while the broader market correction could continue for a few sessions."

Geojit Financial Services' Head of Research Vinod Nair said: "Domestic market extended its rally as banking and finance stocks started to rebound after good recent earnings, upbeat economic data and in anticipation of RBI policy. Market is expecting MPC to maintain the supportive measures and leave the rates unchanged."

LKP Securities' Head of Research S. Ranganathan said: "Bulls were in complete control as indices rose a percentage led by Largecaps and Financials even as Midcaps went through a corrective phase today after many months of outperformance."

"The thumping retail response on the first day itself in the IPO of the foursome seems to have had a cool-off effect on the broader markets today."

IANS

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