Nifty zooms to record high amid F&O expiry
Sensex gains 98 pts, the NSE index up 36 pts as falling Covid cases improve sentiment
image for illustrative purpose
Mumbai The NSE Nifty notched up gains for the fifth straight session to finish at a record high on Thursday as monthly derivatives expired amid lacklustre global cues.
A strengthening rupee and a declining trend in Covid-19 cases in the country shored up investor confidence, traders said. After a choppy session, the NSE Nifty ended 36.40 points or 0.24 per cent higher at its new closing peak of 15,337.85. Its previous closing record was 15,314.70, hit on February 15 this year.
The 30-share BSE Sensex ended 97.70 points or 0.19 per cent higher at 51,115.22. Banking, IT and energy stocks accounted for most of the gains. SBI was the top performer in the Sensex pack, jumping 2.84 per cent, followed by Kotak Bank, Axis Bank, Bajaj Auto, UltraTech Cement, Nestle India and PowerGrid. On the other hand, HDFC, Bajaj Finance, ONGC, Bharti Airtel, HUL and Maruti were among the laggards, shedding up to 2.38 per cent.
"Domestic equities remained resilient and traded in a range amid futures and options (F&O) expiry led volatility," said Binod Modi, Head-Strategy at Reliance Securities. IT stocks remained in focus for second consecutive day as sustained visibility of earnings momentum attracted investors' interest back to this space. Further, banks, metals and auto also were in focus. "Notably, short coverings also have supported momentum in various counters. Buying momentum remained visible in midcap and smallcap stocks and they have outperformed benchmark indices," he added. Vinod Nair, Head of Research at Geojit Financial Services, said, "Market gained its momentum in the opening hours on hopes of a state-wise unlocking due to declining Covid cases. However, RBI's warning of the risk of a bubble in the equity market in its annual report made the market cautious, forcing it to end flat on the day of the monthly F&O expiry."
RBI has noted a disconnect between the market and economy due to Covid-19. The equity market is valued based on its future earnings growth proposition, which is solid for India today. High liquidity does help the market and RBI has reaffirmed its supportive stance till the economy recovers, he added.
