National monetisation plan takes indices to new high
Sensex, Nifty end at lifetime peaks; Metal, banking, finance stocks hog limelight; Bajaj Finserv rallies 8%
image for illustrative purpose
Equity benchmarks darted up to fresh lifetime highs on Tuesday, propelled by heavy buying in banking, finance and metal stocks amid supportive global cues. Rising for the second straight session, the 30-share BSE Sensex soared 403.19 points or 0.73 per cent to end at its lifetime peak of 55,958.98 points. On similar lines, the broader NSE Nifty surged 128.15 points or 0.78 per cent to its all-time closing high of 16,624.60 points.
Experts said market sentiment was also bolstered after Finance Minister Nirmala Sitharaman on Monday unveiled an ambitious Rs6 lakh crore National Monetisation Pipeline (NMP) that included unlocking value by involving private companies across infrastructure sectors -- from passenger trains and railway stations to airports, roads and stadiums.
"Domestic equities recovered sharply today mainly led by strong rebound in financials and metals. Further, positive cues from global equities also supported markets. Notably, short coverings ahead of F&O expiry also aided some high beta stocks to witness sharp recovery today. Further, mid-cap and small-cap stocks witnessed sharp recovery today after seeing continued selling pressure in recent weeks. Sharp correction in number of quality midcap stocks had started offering healthy risk-reward propositions," said Binod Modi, head (strategy) at Reliance Securities.
"Strong rebound in broader markets along with favourable global cues bolstered optimism in Dalal Street, led by metal, banking and realty stocks. Metal stocks led the rally as value buying was witnessed in the sector after deep sell-off during the past four trading sessions due to weak iron ore futures across the globe," added Vinod Nair, head (research) at Geojit Financial Services.
Bajaj Finserv was the star performer in the Sensex pack, climbing 7.91 per cent after the company received in-principle approval from Sebi for sponsoring a mutual fund. Tech Mahindra, Tata Steel, Bajaj Finance, HDFC Bank, SBI and ICICI Bank were the other prominent winners, spurting up to 3.41 per cent. On the other hand, Nestle India, HDFC, Infosys, HCL Tech, Asian Paints, Kotak Bank were among the laggards, shedding up to 1.34 per cent.
