Nifty, Sensex See No Cool-Off Signs As Stocks Extend Record Rally: Midday Market Update
Both the Nifty 50 and the Sensex rose as much as 0.39% and 0.44% to hit a fresh high of 25,333.6 and 82,725.2, respectively.
India's benchmark stock indices saw no signs of cool-off as they continued their record rally on Monday, helped by information technology and consumer stocks.
The 50-stock benchmark gauge—NSE Nifty 50—extended its record rally to day 13, a first since the formal launch of the index. The Nifty 50 put forth a fourth consecutive day of new highs while the 30-stock BSE Sensex hit life high for the third straight session.
Both the Nifty 50 and the Sensex rose as much as 0.39% and 0.44% to hit a fresh high of 25,333.6 and 82,725.2, respectively. As of 12:08 a.m., the NSE Nifty 50 was 56 points, or 0.23%, higher at 25,292, and the BSE Sensex was up 218 points, or 0.27%, at 82,588.
The NSE Nifty IT hit a lifetime high led by gains in HCL Technologies Ltd., Infosys Ltd., and Tech Mahindra Ltd. even as CLSA remained cautious, with the latest analysis pointing to a mixed outlook.
During the week gone by, both Nifty and Sensex extended gains for the third week, with both gaining around 1.6%.
Momentum indicators point to strengthening trend, potentially paving the way for large gains in the near term, according to Anand James, chief market strategist at Geojit Financial Services. "We will have our eyes on 25,365-25,800 as the nearest upside objectives (for Nifty)." The downside markers may be placed near 24,800, a crack of which should see 24,440 as the first downside objective, he said.
Asia-Pacific stocks were trading mixed as concerns linger over China's growth following the decline in factory activity. Mixed expectations of September rate cuts by the US Federal Reserve also called for an early caution. Equity benchmarks in Japan and South Korea were marginally higher, while those in Hong Kong and China were trading lower.
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Shares of Infosys Ltd., ITC Ltd., Bajaj Finance Ltd., HCL Tech Ltd., and Reliance Industries Ltd. contributed the most to the gains in the Nifty 50 in trade so far.
While those of HDFC Bank Ltd., Tata Motors Ltd., Mahindra & Mahindra Ltd., Hindalco Industries Ltd., and Bharti Airtel Ltd. were weighing the index.
On NSE, seven out of 12 sectors slipped with Nifty Metal and Auto falling the most during the session. The Nifty IT index rose nearly 1% followed by FMCG.
Broader markets underperformed the benchmark indices. The BSE Midcap and Smallcap indices were trading 0.12% and 0.43% lower, respectively. On BSE, 14 out of the 20 sectors declined, led by Industries and Capital goods.
Market breadth was skewed in favour of the sellers. Around 1,805 stocks rose, 2,097 stocks declined, and 164 stocks remained unchanged on the BSE.
