Fund influx, economic recovery pushes markets to new closing high (Roundup)

Mumbai, Dec 14 : Global cues, along with a fresh influx of foreign funds and positive macro-economic industrial production data, pushed the Indian equity indices to end at new record highs for the second consecutive session on Monday.

Foreign investors pumped in liquidity worth Rs 2,264.38 crore on Monday as they eye prospects of a faster economic recovery in India amid subsiding Covid-19 cases.

After remaining sideways for the better part of the trading session, the NSE Nifty50 closed at a new record high of 13,558 points, and similarly, the S&P BSE Sensex ended at 46,253 points.

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Globally, shares rose early in Asia but later ended mixed, shrugging off a weak close last week on Wall Street after Japan’s central bank reported a strong improvement in business sentiment.

Similarly, European stock markets traded higher on Monday, adopting a cautiously optimistic stance after Brexit negotiations were extended past the Sunday deadline.

Back home, better than expected industrial production data and massive fund foreign fund inflows led to the continuation of the market rally.

Last week, FIIs poured over Rs 15,000 crore.

However, volumes on the NSE were lower than recent average.

Among sectors, PSU banks, media, metals, pharma gained the most while realty and auto indices fell.

Consequently, the S&P BSE Sensex closed at 46,253.46 points, higher by 154.45 points, or 0.34 per cent, from the previous close.

The NSE Nifty50 was ended the day’s trade at 13,558.15 points, higher by 44.30 points, or 0.33 per cent, from the previous close.

“Nifty made another intra day record high but closed below that level. The erstwhile neglected sectors like Materials, Engineering, Power and Oil & Gas were seen to be in favour,”

“Lower volumes in the markets suggest absence of some FPIs due to year end or Christmas holidays. There are no reversal signs on the Nifty; however lower fund presence could mean range bound index but more activity in small and midcap space,” Deepak Jasani, Head of Retail Research at HDFC Securities.

Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services, said: “PSU stocks continue to see buying interest with ONGC being the top Nifty gainer for second consecutive day. Autos on the other hand, continue to witness profit booking.”

“Vaccine rollout, Brexit talks and hopes of US stimulus could keep the sentiments bouyant. Investors would react to the India’s inflation data on Tuesday and would track US Fed Policy meet due on Thursday.”

Vinod Nair, Head of Research at Geojit Financial Services said: “Market is continuing its bull run with a sustained interest in PSU banks and small & mid-cap stocks. Industrial output data, shows a growth in consumer durables production surpassing the pre-Covid level and strong pickup in electricity and manufacturing sectors.”

“The domestic market is expected to gain its momentum from the global market, due to an eventful week ahead with Britain and EU moving for a no-deal Brexit and the US markets awaiting the outcome of the Fed meeting.”

Disclaimer: This story is auto-generated from IANS service.

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