Sensex crosses 47,300 mark, rises over 380 points

Mumbai (IANS) Healthy foreign fund inflows on the back of positive global cues lifted the key Indian equity indices on Monday.

Both the key indices – S&P BSE Sensex and NSE Nifty50 – closed on new record highs.

The indices rose for the fourth consecutive session with the Sensex crossing the 47,300 points mark for the first time.

Global cues, especially President Donald Trump’s assent finally for the US stimulus bill, was cited as the positive trigger by analysts.

Asian stock markets rose, after President Trump signed a $900 billion economic aid package, backing down from his earlier threat to block the bipartisan bill, in turn helping to reduce uncertainty as governments re-impose travel and business curbs in response to a new coronavirus variant.

European markets rose at the start of the last trading week of 2020, as traders reacted to Brexit developments and Trump signing a $900 billion Covid-19 relief bill into law.

Among sectors, PSU banks, metals, realty, bank, auto and media were the main gainers while the pharma index ended marginally in the red.

The mid and smallcap indices outperformed the Nifty as absence of institutional players gave traders a free hand to ramp up stock holdings.

On Monday, the foreign investors pumped in liquidity worth Rs 1,588.93 crore.

Consequently, Sensex closed at 47,353.75, higher by 380.21 points, or 0.81 per cent, from its previous close.

The Nifty50 on the National Stock Exchange (NSE) ended the day’s trade at 13,873.20, higher by 123.95 points, or 0.9 per cent, from its previous close.

“Liquidity rush boosted by low or zero interest rates abroad is boosting stock markets across the globe,” said Deepak Jasani, Head of Retail Research at HDFC Securities.

“Absence of negative triggers is resulting in the current upward momentum being continued. Nifty is now in close range of the psychological 14,000 number.”

Vinod Nair, Head of Research at Geojit Financial Services, said: “Indian market started on an upbeat note in the final week of the year owing to positive global cues. The global market cheered the news of the $2.3 trillion pandemic stimulus announced in the US and the historic post-Brexit trade deal struck between the UK and the EU. The advancement of a rollout of Covid-19 vaccines in India too uplifted domestic sentiments, leading to positive momentum across all the sectors.”

“We can expect the momentum to be maintained as investors are focusing more on the positive side of these events and are not worried about the peak valuations and lockdowns triggered by the new strain of virus.”

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