Foreign fund flow has continued unabated driving indices higher. Analysts believe that in the medium term, the market is primed to go higher punctuated by some consolidation.
The 30-share pack Sensex added 609.83 points or 1.18 per cent to close at 52,154.13. The index closed above the 52,000 mark for the first time ever. Its broader peer NSE Nifty rose 151.40 points or 1 per cent to 15,314.70.
“Optimistic global sentiment and improving corporate earnings are leading an uptrend in the market dictated by banking and realty stocks. Mild consolidation is noticed in pharma and IT, but mid-caps continue to beat the broad market,” said Vinod Nair, Head of Research at Geojit Financial Services.
“WPI inflation soared to 2.03 per cent in January compared to 1.22 per cent in December which is positive for the manufacturing sector showing upside in demand. Food inflation dipped cooling CPI to 4.06 per cent in January from 4.59 per cent in December 2020, moderation in inflation is in-line with the RBI views, positive for the domestic economy.”
Investors grew richer by Rs 1.22 lakh crore, as the total market capitalisation of BSE-listed companies climbed to Rs 205.14 lakh crore.
Stocks in the news
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- Axis Bank emerges the top bluechip gainer, up 6%
- 304 stocks hit 52-week highs: SBI, DLF, Axis Bank, Grasim, Bajaj twins and Motherson Sumi among top stocks
Among the bluechip stocks, Axis Bank was the top gainer, rising 6.21 per cent. ICICI Bank, SBI, Bajaj Finance, IndusInd Bank, HDFC Bank, HDFC, Shree Cements, Bajaj Finserv, Tata Motors and Kotak Mahindra Bank were other gainers.
SBI Life Insurance was the top loser in the Nifty pack, falling 2.29 per cent. HDFC Life Insurance, Dr Reddy’s Labs, Tata Steel, TCS, Coal India, HUL, Indian Oil and Asian Paints were others that ended in the red.
Broader market indices ended with gains, but mostly underperforming their headline peers. Nifty Smallcap added 0.42 per cent and Nifty Midcap advanced 1.31 per cent. Nifty 500 — the broadest index on NSE — added 0.99 per cent.
LIC Housing Finance, M&M Financial Services, Aditya Birla Capital, Birla Corporation, Linde India and VIP Industries were top gainers from mid- and small-cap indices, climbing in the range of 5-10 per cent.
Timken India, Affle India, Rail Vikas Nigam, Indiabulls Housing Finance, Amara Raja Batteries and Edelweiss Financials Services were major losers from the broader market space, falling in the range of 4-10 per cent.
The sectoral matrix on the NSE was mixed. Nifty Bank was the top gainer, up 3.32 per cent, followed by Nifty Private Bank and Nifty Financial Service. Nifty Metal was the top loser, down 0.47 per cent, Nifty IT and Nifty Pharma were others that ended in the red.
“With no major events, participants should keep a close watch on global markets for cues. Also, maintain focus on the selection of stocks and avoid a contrarian approach.”
Market breadth was in favour of losers as 1,365 stocks ended in the green, while 1,674 counters settled with cuts. As many as 304 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 44 scrips hit 52-week lows, mostly from the microcap space. About 365 stocks hit upper circuit limits and 303 lower circuit limits.
European markets were also trading with gains at the last count. London-based FTSE was up 1.54 per cent while Paris and Frankfurt added 1.21 per cent and 0.35 per cent, respectively. In Asia, all markets that were not closed due to holidays ended in the green.
