Economic rebound lifts equities, Nifty crosses 16K-mark

Mumbai: Faster economic rebound, as shown by healthy macro-data, along with estimates of a possible less severe third Covid wave, lifted India’s equity indices to record high levels, with the Nifty50 breaching the 16,000-mark.

Besides, healthy macro-economic data as well as better-than-expected quarterly results boosted investor sentiments.

The S&P BSE Sensex hit an intra-day record level of 53,887.9 points, while the Nifty50 touched a new high of 16,146.90 points.

In the process, India’s markets outperformed their Asian peers who were mixed in a small band.

The surge into record highs was accompanied by volumes that were nominally higher than recent averages.

Among the sectors, capital goods, banks, auto and telecom were the main gainers.

Consequently, the Sensex ended the day’s trade at 53,823.36, higher by 872.73 points, or 1.65 per cent, from its previous close.

Similarly, the Nifty50 on the National Stock Exchange closed at 16,130.75 points, higher by 245.60 points, or 1.55 per cent, from its previous close.

“Nifty brushed past the 16,000 levels easily and closed higher. However, volumes and ‘AD’ ratio (equal on such a day) do not give confirmatory signals,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

“Hope that India will be a beneficiary of the recent troubles faced by China is keeping sentiments upbeat. While valuations seem high, there is no point in pre-empting a top, but rather wait for signs of medium-term change in trend,” Jasani added.

Image courtesy of thesatimes

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