Benchmark indices score new record; Nifty crosses 18000
Benchmark indices on Monday scored a new record with the broader Nifty hitting 18000 for the first time on optimism over the economy and corporate earnings.
However, in the forex and bond markets, inflation concerns saw the rupee grinding to a 15-month low and bond yields rising to their highest level in 18 months.
The rupee tumbled 37 paise to close at 75.36, dragged by rising crude oil prices and a strong greenback in the overseas market. This is for the first time in this year that the domestic unit is ending below 75.
The benchmark 10-year bonds closed at 6.34 per cent, up from the previous close of 6.318 per cent.
Stocks rose for the third consecutive session because of gains in banking, auto and power shares. Market circles said the mood remains positive despite taper concerns because of the steady decline in daily Covid cases, increasing vaccinations and relief measures by the government.
Despite a lukewarm beginning to the results season with TCS, the expectation is that corporate India will report good earnings growth for the quarter ended September 30 and guide towards a better performance ahead.
Reflecting this confidence, the broader Nifty on Monday surpassed the 18000 mark for the first time in its history to touch an record high of 18041.95. The index later rose 50.75 points, or 0.28 per cent, to its all-time closing high of 17945.95.
Similarly, the 30-share Sensex, which began in the green at 60099.68, scaled a new intra-day high of 60476.13. The gauge closed 76.72 points or 0.13 per cent higher at 60135.78 — a new closing high as well.
“The Nifty touching an all time high level of 18000 is a journey. It is not a destination. The market is driven by the triveni sangam of positive sentiment, fund flow from domestic and global investors and improving corporate profitability. Festival season has begun with a bang and supported positive momentum,’’ said Nilesh Shah, group president & MD, Kotak Mahindra Asset Management Company.
Maruti Suzuki was the top gainer in the Sensex pack, rising nearly 4 per cent. However, TCS was the top loser on the Sensex, shedding over 6 per cent, as its second quarter earnings did not impress the Street. Analysts here said that expectations have risen for the technology sector and there could be correction in these counters if their performance does not meet expectations.
Birla AMC debut
Shares of Aditya Birla Sun Life AMC made a muted market debut on Monday and settled nearly 2 per cent lower against its issue price of Rs 712. The stock listed at Rs 712 on the BSE. Later, it touched a high of Rs 721 and low of Rs 696 during the day. It settled at Rs 699.65, lower by 1.73 per cent.
On the NSE, it debuted at Rs 715, a marginal gain of 0.42 per cent from the issue price. The stock settled at Rs 698, registering a decline of 1.96 per cent.