Updated: February 3, 2021 4:28:18 pm
The frontline equity indices on the BSE and National Stock Exchange (NSE) continued their bull run and ended higher for the third consecutive day, settling at new record highs on Wednesday.
The S&P BSE Sensex climbed 458.03 points (0.92 per cent) to settle at a new lifetime high of 50,255.75, while the Nifty 50 on NSE ended at a fresh record high of 14,789.95, rising 142.10 points (0.97 per cent). In the intraday trade, the BSE benchmark had touched a record high of 50,526.39, while the NSE barometer rose to a lifetime high of 14,868.85.
Among the index contributors were HDFC twins – comprising of Housing Development Finance Corporation (HDFC) and HDFC Bank, along with IT major Infosys, Axis Bank, IndusInd Bank and ICICI Bank. See heatmap below:
On Tuesday, the Sensex had surged 1197.11 points (2.46 per cent) to settle at 49,797.72. Likewise, the Nifty had risen 366.65 points (2.57 per cent) to end at 14,647.85.
Coming to the sectoral indices, the Nifty Pharma index was the top gainer in trade on Wednesday climbing 2.79 per cent led by gains in shares of Divi’s Laboratories, Torrent Pharmaceuticals and Dr. Reddy’s Laboratories. It was followed by Nifty PSU Bank which rose 2.61 per cent aided by Punjab National Bank, Canara Bank and Bank of Baroda.
Here’s how the sectoral indices performed:
“Nifty managed to register a new all-time high on Feb 03, though it retreated from the highs towards the end. This raises the possibility of a bullish technical count, especially if it does not correct sharply on the succeeding day. The band for Nifty in the near term is 14,868 – 14,653,” Deepak Jasani, Head of Retail Research at HDFC Securities said in a statement.
World shares rose on Wednesday as volatility caused by a retail trading frenzy on Wall Street subsided on expectations of tougher regulation, while optimism about US fiscal stimulus also supported sentiment.
The MSCI world equity index was up 0.3 per cent by 0852 GMT, inching closer to its record peak following gains in Asia overnight and a positive open in Europe.
World shares recovered from wild swings last week when a Reddit-driven trading fever boosted heavily shorted stocks like GameStop, forcing hedge funds to reduce their equity books.
Investors were bracing for tougher US markets regulation after Treasury Secretary Janet Yellen asked to discuss whether trade had been consistent with fair and efficient markets.
Gamestop’s Frankfurt-listed shares fell 45 per cent in morning trade in Europe.
Markets also cheered to renewed hopes for US President Joe Biden’s proposed $1.9 trillion COVID-19 aid bill after the Senate took steps to allow Democrats to pass Biden’s package without Republican support.
Well-received earnings updates from tech giants Alphabet and Amazon.com also bolstered sentiment.
Nasdaq and S&P 500 futures were up 0.8 and 0.4 per cent respectively.
–global market input from Reuters
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