Indian equity markets posted strong gains for the third day in a row with heavyweight Reliance Industries jumping 4.5% on winning $8 billion worth of airwaves in a spectrum auction. The NSE Nifty 50 index ended 2.19% higher at 15,245 while the S&P BSE Sensex closed about 1150 points higher at 51,444.65. The broader markets also witnessed strong buying with BSE midcap and smallcap indices rising in the range of 1.3-1.5%.
Here are 10 things to know about today’s market performance:
1) Sensex is up about 2350 points in just three sessions after seeing a nearly 4% fall on Friday and is about1,000 points away from its all-time highs.
2) Expansion of the country’s COVID-19 vaccination drive, upbeat economic data and easing US bond yields have lifted the sentiment.
3) Financial stocks rallied, with Nifty’s PSU bank and private bank index closing up 3.16% and 2.75%, respectively.
4) The Nifty Metal index advanced the most among sectoral indexes, closing up 3.34%, at its highest in three years.
5) “Volumes on the NSE were higher than recent average with a very positive advance decline ratio. In a bullish signal, the Nifty has on March 03 filled the downgap made on Feb 26, though it took longer for the gap to be filled,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
6) “Now the all time high of the Nifty is in sight being barely 186 points away. With momentum on its side, there may not be too many impediments in Nifty achieving this over the next few days.”
7) Ajit Mishra, VP – Research, Religare Broking, said: “Participants are taking comfort from the domestic factors such as decent macro data, earnings upgrades and steady progress of vaccine drive. Importantly, Nifty has reversed the last week’s decline and indications are pointing towards a further surge ahead. We remain cautiously optimistic on the markets and suggest focusing more on the selection of trades.”
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8) A private survey showed India’s dominant services activity grew at its fastest pace in a year last month, driven by an extended robust recovery in domestic demand though input costs rose at the quickest rate in eight years
9) Shrikant Chouhan, Executive Vice President, Equity Technical Research at Kotak Securities, said:’ The broad support of all sectors in the market clearly shows that it will not be difficult for the Nifty / Sensex to cross the previous high of 15432/52517. The Nifty/Sensex may move to the level of 16000/54200 in the next few days or weeks on the decisive dismissal of the level of 15435/52520. On Thursday, try to be stock specific in the market.”
10) Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments, said: “The Nifty has been consistent in its upside momentum. It sustained well above the 14950 levels and we have zoomed thereafter. It should achieve 15300 as its first target and thereafter 15500. Good support lies at 14600-14700 and therefore any dip or intraday correction can be utilized to enter the index for higher targets.”
