Sensex, Nifty hit fresh highs; TCS, HUL and RIL top contributors


Benchmark indices logged fresh all-time highs on Thursday amid positive sentiment across the global on hopes the would maintain its easy monetary stance amid not so encouraging signs of economic recovery.


The rose 514 points, or 0.9 per cent, to end at 57,852, while the Nifty rose 158 points, or 0.92 per cent, to finish at 17,234. Both indices added nearly 9 per cent each in August, their best monthly showing since November.





The latest increase was boosted by gains in index heavyweights Tata Consultancy Services (TCS), Hindustan Unilever (HUL), and Reliance Industries (RIL)—the three stocks accounted for nearly half of the Sensex’s gains. rose 3.34 per cent to end at an all-time high of Rs 3,838, rose 2.5 per cent to end at a new record of Rs 2,800, and gained over a per cent to end at Rs 2,294, its highest close since October 2020.


Foreign portfolio investors (FPIs) have emerged as strong buyers this week, buoyed by the US Fed Chairman Jerome Powell’s dovish comments at the central bank’s annual Jackson Hole conference over the weekend. Powell indicated that the US Fed is likely to begin tapering bond purchases before the end of the year but was in no rush to hike interest rates.


The 10-year yields declines to 1.3 per cent and the dollar weakened against major global currencies after Powell’s comments.


On Thursday, bought shares worth Rs 349 crore, taking their month-to-date buying tally past Rs 6,000 crore.


“Domestic indices nudged higher tracking cues from positive economic data, FPI buying and mixed global ahead of the release of US jobs data. Economic data is nudging the performance of core sectors like capital goods and industrials, while the recent high performance of the market is also tempting investors to shift to safer defensive sectors,” said Vinod Nair, head of research at Geojit Financial Services.


Investors are hoping that the US Fed will not be in a hurry to raise rates as the US’ economic growth was beginning to slow.


“Going ahead, the market is likely to continue with its positive momentum as economic recovery and vaccination drive both continue their northward journey. Globally, investors are awaiting US non-farm payroll data due on Friday, especially post US Fed’s stress on recovery in the labour market in its tapering decision. Though the long-term trend is positive, one cannot ignore bouts of volatility, given risk of third wave of pandemic, commodity-linked inflation, high earnings growth expectation leading to rich valuation,” said Siddhartha Khemka, head — retail research, Motilal Oswal Financial Services.


Experts said investors are trying to assess when the delta variant outbreak might peak and how that will play into the timing of the US Fed’s taper plans.


Most global stocks are near record levels and gauges of implied financial market volatility are declining, suggesting many remain optimistic that the reopening from the health crisis will weather challenges.


A total of 1,942 stocks advanced, while 1,245 declined on the BSE, indicating that the gains are getting more broad-based.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link

Share Market Today
Logo