High-flying: Sensex closes above 52K, banking stocks soar (Roundup)

India’s benchmark equity indices rose for the third consecutive session on Monday with S&P BSE Sensex closing above the 52,000-mark for the first time.

Accordingly, the NSE Nifty50 closed at over 15,300, another record high.

The rally was powered by banking and financial services stocks, which rose on the back of lower retail inflation numbers and RBI’s open market operation.

Besides, healthy foreign fun inflows too buoyed the market.

On Monday, FIIs were net buyers to the tune of Rs 1,234.15 crore in BSE, NSE and MSEI in the capital market segment.

Globally, shares rose for the 11th consecutive day to hit a fresh peak while riding on optimism about the rollout of more Covid-19 vaccines and new fiscal aid from Washington, while tensions in the Middle East drove oil to a 13-month high.

On the domestic side, strong corporate earnings have ignited hopes of faster economic recovery while buoyant global markets also aided risk sentiment.

Among different sectors, bank, realty and auto were the main gainers while metal, IT, and pharma receded.

Consequently, the S&P BSE Sensex closed at 52,154.13, higher by just 609.83 points, or 1.18 per cent, from its previous close of 51,544.30 points.

The Nifty50 on the National Stock Exchange closed at 15,314.70, higher by 151.40 points, or 1 per cent.

“Nifty keeps rising with upgaps reflecting pent-up buying, partly driven by encouraging Q3 numbers. However, selective buying in sectors means that the overall volumes are measured and advance decline ratio also is either flat or negative (like on Feb 15),” said Deepak Jasani, Head of Retail Research at HDFC Securities.

“The next resistance for the Nifty is 15,470 while 15,243 could provide support.”

According to Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services: “Going ahead, the market could continue with its positive momentum given the optimism over Covid-19 vaccines’ rollout, quicker economic recovery, and hopes for further US fiscal stimulus.”

“With earnings season largely over and no major event ahead, global cues will largely dictate the short-term market trend.”

Vinod Nair, Head of Research at Geojit Financial Services, said: “Optimistic global sentiment and improving corporate earnings are leading an uptrend in the market that is dictated by banking and realty stocks.”

“Mild consolidation is noticed in pharma and IT, but mid-caps continue to beat the broad market.”