Domestic share markets scaled new peaks on Monday tracking gains in Asian equities, as investors remained optimistic about COVID-19 vaccines and US President Donald Trump’s approval of a pandemic relief package aided risk sentiment globally. The S&P BSE Sensex index jumped 433.18 points, or 0.92 per cent, to an all-time high of 47,406.72 during the session, and the broader NSE Nifty 50 benchmark gained 136.05 points, or 0.99 per cent, to an all-time high of 13,885.30 during the session. Gains across most sectors — led by banking, financial services, automobile and metal shares — backed the upmove in the markets.
The Sensex ended 380.21 points, or 0.81 per cent, higher at 47,353.75 while the Nifty settled at 13,873.20, up 123.95 points, or 0.90 per cent, from its previous close — both record closing highs.
Forty one stocks in the Nifty basket of 50 shares finished higher for the day. JSW Steel, Tata Motors, State Bank of India (SBI), Titan and HDFC Life, ending between 3.20 per cent and 5.83 per cent higher, were the top percentage gainers in the index. On the other hand, Britannia, Shree cement, Cipla, Sun pharma and Hindustan Unilever, closing 0.33-0.47 per cent lower each, were the worst hit among the nine Nifty laggards.
HDFC Bank, HDFC, ICICI Bank and Kotak Mahindra Bank were the biggest drags on Sensex.
Broader Asian shares rose at the start of the final trading week of 2020 as Mr Trump signed into law a pandemic aid and spending package, averting a partial government shutdown in the US.
“Absence of negative triggers is more relevant now… There is no sign of reversal of liquidity or interest rate trajectory and as long as those signs are not there, the markets will continue to chug along,” said Deepak Jasani, head of research, HDFC Securities.
Foreign institutional investors (FIIs) have fuelled the recent rally in the domestic markets, having net invested ₹ 62,648 crore into Indian capital markets so far this month, including ₹ 56,643 crore in equities alone, according to NSDL data. With this, December is on track to become a third straight month of net inflows into the capital markets.
“Normally, FII inflows are weak in December. But this year has been an exception. The declining dollar, expectations that it will decline further in 2021, the historical low interest rates and the Federal Reserve’s commitment to keep rates low through 2023 are the factors behind this relentless FII inflows,” VK Vijayakumar, chief investment strategist at Kochi-based Geojit Financial Services