sensex today: Sensex and Nifty hit record closing highs: five factors behind the surge
Titan, HDFC, Nestlé India, IndusInd Bank, Ultra Cemco and SBI were the best winners of the sensex pack. (Representative image)
NEW DELHI: Stock indices hit record highs on Tuesday, with the benchmark BSE sensex surging more than 850 points on gains in computer, consumer and financial stocks.
Rallying for the second consecutive session, the 30-stock BSE index jumped 837 points or 1.65% to close at a new high of 53,823; while the wider NSE Nifty hit 246 points or 1.55% to a new high of 16,131.
Titan was the biggest winner in the sensex pack, with a 4.16% increase, followed by HDFC, Nestlé India, IndusInd Bank, Ultra Cemco and SBI.
While Bajaj Auto, Tata Steel and NTPC were the only losers to drop 0.28 percent.
On the NSE platform, with the exception of Nifty Media and Metal, all other sub-indices finished in green with Nifty FMCG, with financials advancing 1.73%.
Here are the main reasons for today’s market rally:
* Soaring technological, FMCG and financial stocks
The market rally was led primarily by information technology, financial services and fast-moving consumer goods (FMCG) stocks, with economic indicators pointing to a recovery in demand.
While the Nifty FMCG sector gained up to 1.73 percent, the Nifty IT index climbed 1.18 percent and the financial services segment jumped 1.68 percent.
Sound macroeconomic data as well as better than expected quarterly results have boosted investor sentiment, experts say.
* The growth of the plant’s activity is accelerating
Activity at the country’s factories rebounded last month and the July trade deficit widened to $ 11.23 billion from $ 9.4 billion a month ago, economists pointing to the normalization of the activity after the relaxation of restrictions.
“Things specific to India continue to be strong, with industrial production data and a positive Manufacturing Purchasing Managers Index for July,” said Anita Gandhi, full-time director at Arihant Capital Markets, at Reuters news agency, adding that the unlocking of restrictions is also a positive factor.
* Strong business results
IT companies posted better-than-expected numbers in the first quarter of the current fiscal year, boosting bullish sentiment in the market.
“Fundamental support for the bulls comes from strong corporate results. Now the macros are turning very positive with the decrease in the budget deficit, the increase in tax revenues and now the excellent performance of exports. The PMI at 55.3 indicates a potential sharp turnaround in economic conditions. activity, ”VK Vijayakumar, chief investment strategist at Geojit Financial Services told PTI news agency.
* IPO push
Ecommerce beauty firm Nykaa plans to raise $ 500 million through its Initial Public Offering (IPO), becoming the latest local startup to pursue listing on national stock exchanges.
So far, around 12 companies have raised Rs 27,000 crore through the IPO route in the first four months (April-July) of the current fiscal year, and the pipeline is also quite strong. for the rest of the year.
* Better GST collections
In signs of accelerating economic activity, the collection of taxes on goods sold and services rendered returned to more than Rs 1 lakh crore in July after the second wave of Covid-related restrictions caused a skirmish on last month.
The goods and services tax (GST) rose 33% year-on-year in July to over Rs 1.16 lakh crore, indicating that the economy is recovering at a rapid pace. As of July 2020, the collection was Rs 87,422 crore.
This is the second highest collection so far this fiscal year after a record Rs 1.41 lakh crore in April.
(With contributions from agencies)