Faster economic rebound lift equities, Nfty crosses 16k mark (2nd Lead)

Faster economic rebound, as shown by healthy macro-data, along with estimates of less severe third Covid wave, lifted India’s equity indices to record high levels on Tuesday, with the Nifty breaching the 16,000 mark.

Besides, healthy macro-economic data as well as better-than-expected quarterly results boosted investors’ sentiments.

Segment wise, FMCG, consumer durables, and telecom shares saw healthy demand.

The S&P BSE Sensex hit intra-day record level of 53,887.9 points and the Nifty50 touched a new high of 16,146.90 points.

The Sensex ended the day’s trade at 53,823.36, higher by 872.73 points, or 1.65 per cent, from its previous close.

Similarly, the Nifty50 on the National Stock Exchange closed at 16,130.75 points, higher by 245.60 points, or 1.55 per cent, from its previous close.

“Progressive economic data, indicates strong rebound from impact of the second wave. All major domestic data like PMI index, GST collection, corporate earnings, export data, etc favour a strong recovery,” Geojit Financial Services’ Head of Research Vinod Nair said.

“This has added euphoria in domestic market reaching new highs along with context to a drop in global risk after the accommodative monetary & fiscal policy announcements. A similar monetary policy is expected from ongoing RBI meeting.”

Motilal Oswal Financial Services’ AVP, Research, Broking & Distribution, Sneha Poddar said: “What really provided support to the market was the 1QFY22 earnings report which begun on a very healthy note despite the Covid 2.0 impact. It helped the market to largely sail through the headwinds of a possible third Covid wave, commodity led inflation and volatility around the US Fed taper talk.”

“Management commentaries across the board suggest an improved demand environment post June 2021, led by the easing of restrictions, lower active Covid-19 cases, and a pickup in vaccinations.”