Record highs: Global cues, hopes of healthy macros boost equities
Bombay Stock ExchangeIANS (File photo)

Record highs: Global cues, hopes of healthy macros boost equities

Mumbai, August 30, 2021

Encouraging global cues, as well as expectations of healthy macro-economic data points, boosted India's key domestic equity indices on Monday.

The positive cues from US Fed along with expectations of a healthy growth in Q1 FY22 GDP data led to the northward trajectory of the two indices.

Initially, both the key indices opened on a gap-up note and swiftly rose in the early part of the day.

After a brief sideways move, they again resumed the upward march and ended almost at the intra-day high levels.

Globally, Asian shares perked up after US Federal Reserve Chairman Jerome Powell struck a dovish tone at the central bank's long-awaited symposium.

Besides, European stocks held firm on Monday near record highs scaled earlier this month, as hopes that continued central bank support would sustain an economic recovery offset woes over rising Delta Covid-19 variant cases.

Sector-wise, IT was the only sector that ended marginally in the red due to the appreciating rupee.

In contrast, telecom and metals were the large gainers among sectors.

The S&P BSE Sensex closed the day's trade at 56,889.76 points, up 765.04 points, or 1.36 per cent, from its previous course.

It made an intra-day record high of 56,958.27 points.

Similarly, Nifty50 on the National Stock Exchange inched closer to the landmark 17,000 level but ended the day's trade at 16,931.05 points, up 225.85 points, or 1.35 per cent, from its previous close.

The NSE Nifty50 touched the intra-day record high of 16,951.50 points.

"Nifty closed once again at the all time high," HDFC Securities' Head of Retail Research Deepak Jasani said.

"It is now near the 17,000 psychological mark. Sharply positive advance decline ratio has improved sentiments, though participants are aware of the high valuation and possibility of a correction that can set in soon. 17,000 is the next logical target for the Nifty while 16,731 is the support for the near term."

Motilal Oswal Financial Services' Head, Retail Research Siddhartha Khemka said: "On the domestic front, taking cues from global peers, Indian indices opened gap up and ended near day's high level. Except for IT, all other sectors supported the indices to rally towards new high. Auto ancillaries gained following a report that Tesla is in talks with at least three companies to source critical parts for its planned entry into the country."

"On stock specific front, Bharti Airtel was top gainer - up 5.2 per cent after the strong management commentary in its concall with regards to rights issue fund raising. Divis Lab, Axis Bank, Tata Steel and Coal India were other top gainers up in range of 3-4 per cent. TechM, Nestle, Eicher Motors, Infosys, and Wipro were top laggards."

IANS

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