The domestic benchmark indices on the BSE and National Stock Exchange (NSE) settled at their lifetime high on Monday taking cues from their global peers which rose following Joe Biden’s victory in the US presidential election.
The S&P BSE Sensex scaled 704.37 points (1.68 per cent) to settle at its record high of 42,597.43, while the Nifty 50 too ended at a lifetime high of 12,461.05, after rising 197.50 points (1.61 per cent).
Earlier in the day, both the indices had opened over 1 per cent higher and scaled their respective record highs in intraday trade with Sensex touching 42,645.33 and Nifty rising to 12,474.05.
Gains on the BSE benchmark were led by IndusInd Bank, Bharti Airtel, ICICI Bank, Axis Bank, Power Grid Corporation of India and Tata Steel. Just three stocks ended in the red – ITC, Maruti Suzuki India and Bajaj Finserv. See heatmap below
Among sectoral indices on NSE, the Bank Nifty surged 735.15 points (2.74 per cent) to end at 27,534.10. IndusInd Bank, ICICI Bank and Axis Bank were the top drivers of the key index. Separately, the Nifty IT index rallied 327.90 points (1.53 per cent) to settle at 21,820.15. Here, Coforge, Larsen & Toubro Infotech and Tech Mahindra were the top gainers.
Here’s how sectoral indices performed:
In the broader market, the S&P BSE MidCap index ended at 15,560.10, up 155.34 points (1.01 per cent), while the S&P BSE SmallCap settled at 15,304.72, up 86.71 points (0.57 per cent).
“Firm global cues and a clear majority to favorite democrats party in the US election took main benchmark indices to all time high. The rally in the domestic market was also led by Banking and Finance stocks on improved business outlook post Q2 results, end to moratorium and bounce back of economic activities. Broader market has shown under performance compared to headline peers as investors feel safer chasing heavyweights during high market levels. We expect more stimulus measures are required to boost the economy and announcements regarding the same from the government is expected in the near future that can further accelerate our domestic market,” Vinod Nair, Head of Research at Geojit Financial Services said in a post-market statement.
World stocks hit a record high on Monday and the dollar stayed weak as expectations of better global trade ties and more monetary stimulus under US President-elect Joe Biden supported risk appetite.
Markets started to trade on the prospect of a Biden presidency and a Republican-controlled US Senate last week, but the Democratic candidate’s projected victory on Saturday gave more fuel to the move.
The MSCI world equity index, which tracks shares in 49 countries, rose 0.5 per cent to a record high in early European hours. On Friday, it posted its biggest one-week gain in nearly seven months.
E-mini futures for the S&P 500 jumped more than 1.4 per cent on Monday. Nasdaq futures rallied more than 2 per cent to just under a record high, signalling a positive start for US markets.
MSCI’s broadest index of Asia Pacific shares outside of Japan jumped 1.3 per cent after hitting its highest since January 2018. The pan-Europe STOXX 600 climbed 1.5 per cent to one-month highs by 0846 GMT.
— global market input from Reuters
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