Unlock hopes, Covid decline push Nifty to record high (Roundup)

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India’s key benchmark equity index NSE Nifty50 touched a new record high on Friday as fresh Covid cases declined in the country, igniting investors’ hopes for a quick unlock.

Besides, global cues and accelerated pace of economic recovery led both the indices – Nifty50 and S&P BSE Sensex – to open higher.

In the day’s trade session, oil and gas rose the most with Reliance leading the charge, while power and healthcare fell the most.

In Asia, stock markets rose on Friday, powered by encouraging signs that the US economic recovery from the pandemic is gaining momentum.

Besides, rising Eurozone economic sentiment and the prospect of further stimulus in the US have boosted the mood in the markets on Friday, helping European stocks inch towards record highs.

Consequently, the Nifty50 of the National Stock Exchange ended the trade session at 15,435.65, up 97.80 points, or 0.64 per cent, from its previous close.

The Nifty50 hit a record high of 15,469.6 intra-day.

Similarly, the S&P BSE Sensex closed the day’s trade at 51,422.88, higher by 307.66 points, or 0.60 per cent, from its previous close.

“This suggests that some much-needed profit-taking in the broader market has occurred. Nifty could consolidate the recent gains before inching up higher. US markets are shut on Monday and hence Indian markets will not have their performance to track over Monday and Tuesday,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

“Nifty could over the next few days rise towards 15600 while 15,300-15,327 band could offer support,” he added.

According to Siddhartha Khemka, Head of Retail Research, Motilal Oswal Financial Services: “Steady decline in Covid-19 cases, announcement of unlocking in the national capital, and $6 trillion fiscal stimulus in the US held up investor confidence. This marks a first step towards a gradual uptick in economic activities.”

S. Ranganathan, Head of Research at LKP Securities, said: “Markets remained in the green as investors basked in the glory of the $3 trillion market cap which was achieved with ease thanks to the broad-based rally across market capitalisation. With FIIs being net sellers during April and May, the appetite shown by domestic investors is getting reflected in the buoyancy across the market breadth.

“Today’s trade was led by the big boys – Reliance and HDFC twins – as we did see profit-taking across midcaps post-RBI comments on the consequences of liquidity infusion during the pandemic.”

–IANS

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