Domestic markets joined a global stock rally amid expectations of a mega stimulus by the incoming Biden administration, good corporate results and further recovery in the economy. Inching closer to the 50,000-level, the benchmark Sensex crossed the 49,000-mark, soaring 487 points to 49,269.32, while the NSE Nifty Index rose 138 points to 14,484.75 on buying support by foreign investors and domestic investors.
Most Asian markets rose following another record performance on Wall Street as investors cheered the prospect of a further massive stimulus for the US economy, with President-elect Joe Biden calling for a spending spree in the trillions of dollars. With vaccines being rolled out around the world and key risk events including the US election, Georgia senate runoffs and Brexit now out of the way, focus is now on the expected global recovery from last year’s economic catastrophe.
S Ranganathan, head of research at LKP Securities, said, “Buoyed by positive global cues, tech stocks together with auto stocks powered the Nifty closer to the 14,500-mark.” The Sensex is now 731 points short of the 50,000 mark.
“The Sensex is expected to cross the 50,000 level this week. Foreign inflows are still strong. There’s good liquidity in the market,” said BSE dealer Pawan Dharnidharka.
Analysts said improved outlook for third quarter earnings along with strong global cues helped Sensex to breach 49,000 mark. “Hopes of a new US stimulus to be unveiled this week created an upbeat movement in Wall Street while profit booking is seen in the European markets,” said Vinod Nair, head of research at Geojit Financial services.
Meanwhile, the rupee depreciated by 16 paise to close at 73.40 against the US dollar on Monday, tracking a rebound in the American currency overseas.
On Friday, the rupee had finished at 73.24 against the American currency.
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