New Delhi: Equity benchmark indices maintained their winning streak for the fifth session on Monday as investors, already buoyed by strong macroeconomic data, reacted positively to the BJP’s victory in three assembly elections.
The BJP’s clear majorities in state elections in Madhya Pradesh, Rajasthan and Chhattisgarh last week added to the positive sentiment built on the back of strong macroeconomic numbers and steady foreign fund inflows, analysts said.
Crude oil prices falling below USD 80 per barrel also boosted investor sentiment, they said.
The 30-share BSE Sensex jumped 877.43 points, or 1.30 percent, to touch a fresh peak of 68,358.62. The Nifty rose 284.80 points, or 1.41 percent, to hit an all-time high of 20,552.70.
Among the Sensex firms, Adani Enterprises and Adani Ports led the index with the highest gains of 6.79 percent and 4.52 percent respectively. Other big gainers were SBI, ICICI Bank, Bharti Airtel, NTPC and Larsen & Toubro.
On the other hand Maruti and Britannia and Dr Reddy’s Laboratories defied the trend and traded negatively.
Foreign institutional investors bought shares worth Rs 1,589.61 crore on Friday, according to exchange data.
VK Vijayakumar, Chief Investment Strategist, Geojit Financial Services said: “The market likes political stability and a reform-oriented, market-friendly government. From a market perspective, the results were better than expected. The market has already partially discounted. 500 in the last 4 sessions. BJP wins in points rally. But the mood is so upbeat that the rally will continue.” He said the global context was also favorable with the US 10-year bond yield falling to 4.23 percent.
However, a “controlling factor will be valuations which are higher and will expand further as the rally gathers momentum. In the near term the market will ignore the fundamentals and move higher but soon higher valuations will trigger some selling”, Vijayakumar added.
In Asian markets, the Shanghai Composite and Hang Seng are trading lower while the Nikkei 225 is trading flat.
European markets ended broadly on Friday with Germany’s DAX closing 1.12 percent higher while London’s FTSE 100 rose 1.03 percent and France’s CAC 40 rose 0.48 percent.
U.S. markets ended mostly with gains on Friday, with the S&P 500 up 0.59 percent.
Global oil benchmark Brent crude fell 0.63 percent to USD 78.38 a barrel.
Domestic equity markets are expected to take cues from global trends, trading activity of foreign investors and RBI’s interest rate decision later this week.
On Friday, the Nifty rose 134.75 points or 0.67 percent to settle at an all-time high of 20,267.90.
Last week, the BSE benchmark jumped 1,511.15 points or 2.29 percent, while the Nifty gained 473.2 points or 2.39 percent.
The market capitalization of NSE-listed companies crossed the USD 4 trillion (Rs 334.72 trillion) mark for the first time on Friday.
The combined market valuation of all listed companies on the BSE also touched the USD 4 trillion-milestone for the first time on Wednesday (November 29).
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