Stocks began the first day of the last week of 2020 on a record note with key indices settling at all-time highs, boosted by the Brexit deal and a $2.3 trillion US stimulus package.
The 30-share Sensex ended with gains of 380.21 points, or 0.81 per cent, to close at a record 47353.75 after touching an intra-day peak of 47406.72. Similarly, the NSE Nifty ended 123.95 points, or 0.90 per cent, higher at 13873.20, also a record, with an all-time intra-day high of 13885.30.
Market circles expect stocks to maintain their current momentum, amid optimism of a global economic recovery as the Covid-19 vaccine gets rolled out and central banks continue with their accommodative stance.
The sentiment further improved as US President Donald Trump signed into law a massive $2.3 trillion spending bill that includes a $900 billion coronavirus relief package, thus averting a US government shutdown, apart from restoring unemployment benefits to several citizens.
Besides, the historic post-Brexit trade deal struck between the UK and the EU removed a major overhang in companies such as Tata Motors. Its shares gained almost 6 per cent to close at Rs 186.30.
“Liquidity rush caused by low or zero interest rates abroad is boosting stock markets across the globe. Absence of negative triggers is resulting in the current upward momentum being continued. The Nifty is now in close range of the psychological 14000 mark,’’ Deepak Jasani, head of retail research, HDFC Securities, said.
Business confidence up
India could benefit from the likely shift in global supply chains from China to other economies in the aftermath of the Covid-19 pandemic, according to a Ficci-Dhruva Advisors survey covering 150 companies.
“Nearly 70 per cent of the survey participants have said India could benefit from this move and they expect a fair share of manufacturing to shift from China to India in the near future,” said Ficci on the findings of the survey.
Moreover, the prospect of introduction of a vaccine against Covid-19 early next year has improved sentiment, with almost 74 per cent of the participants foreseeing a significant positive impact on their business.
With inputs from Delhi Bureau