Hopes of healthy Q2 results lift equities; Nifty50 breaches 18K-mark
Mumbai, October 11, 2021
India's benchmark equity index -- NSE Nifty50 -- breached the 18,000 point-mark on Monday as positive global cues along with expectations of healthy Q2FY22 results buoyed investor sentiments.
The Nifty50's march from 17,000 to 18,000 took just 28 days. In the day's trade, the Nifty50 touched an intra-day record high of 18,041.95 points.
The other key index -- S&P BSE Sensex -- closed in the green during Monday's trading session.
Globally, Asian stocks ended Monday's session on a mixed note. However, European stocks kicked off the week slightly lower, with nerves around inflation and the upcoming earnings season off-set surging commodity prices that supported oil and mining shares.
In terms of sectors, power, metals, realty, auto and bank indices rose the most, whereas IT and telecom indices receded.
Consequently, the 30-scrip S&P BSE Sensex closed at 60,135.78 points, up 76.72 points or 0.13 per cent. The Sensex opened at 60,099.68 points from its previous close of 60,059.06 points.
The NSE Nifty50 ended at 17,945.95 points, up by 50.75 points or 0.28 per cent.
"Nifty touched and crossed 18,000 briefly. In the march from 17,000 to 18,000, all the old economy stocks, including PSUs, did well," said Deepak Jasani, Head of Retail Research, HDFC Securities.
"The Nifty could meander around this level for a few more sessions before taking any one direction, most likely up. Sector and stock specific rotation could be witnessed going ahead," he added.
According to Siddhartha Khemka, Head of Retail Research at Motilal Oswal Financial Services: "The rally has been driven by strong liquidity, healthy corporate earnings and upbeat commentaries, as falling Covid cases lead to opening up of the economy. Also, government policies like PLI schemes, relief for telecom sector and privatisation of Air India are supporting the markets."