The Sensex crossed the 48,000-milestone on Monday for the first time, amid strong strong cues from overseas markets and expectations of good quarterly results. The 30-share index soared 308 points, or 0.64 per cent, to close at 48,176.80 and the Nifty50 gained 114 points, or 0.82 per cent, to 14,132.90 on buying support by foreign investors.
Foreign investors continued their buying spree and bought stocks worth Rs 1,843 crore. The Nifty also closed at another record high, with the market breadth improving further.
Every dip is being considered by the traders as an opportunity to buy. “The day’s volatility was fuelled by the early rollout of the vaccine in India and positive opening of the European market. The leader was IT stocks, boosted by the hope of a strong quarterly result. The earnings season will start soon. The global market has kicked off the year on a positive note as investors across the globe are optimistic about economic recovery on the report over vaccine approval and fiscal support,” said Vinod Nair, head of research at Geojit Financial services.
India’s manufacturing sector remained steady even as employment fell for nine straight months. The IHS Markit India Manufacturing Purchasing Managers’ Index stood at 56.4 in December, compared to 56.3 in November. Chinese factory activity continued to accelerate in December, though the PMI missed forecasts at 53. Japanese manufacturing stabilised for the first time in two years in December, while Taiwan’s picked up.
The rupee appreciated by 9 paise to close at a four-month high of 73.02 against the US dollar on Monday, supported by sustained foreign fund inflows and weakness of the American currency overseas.
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