Sensex, Nifty hit record highs as bull run continues; IT stocks jump
At 9:21 am, the 30-share Sensex was up 223.53 points at 80,210.33, while the Nifty50 rose 66.35 points to 24,352.85.
Most of the broader market indices also opened the trading session on a positive note.
The strong momentum on Dalal Street was provided by a rally in information technology stocks. The Nifty IT rose nearly 1% in early trade and was one of the top gainers.
The top five gainers on the Nifty50 were Hindalco, Tata Motors, ICICI Bank, M&M and HCLTech. On the other hand, the top losers were HDFC Bank, Cipla, Adani Enterprises, Dr Reddy’s and IndusInd Bank.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services, said, “In the near-term, the bullish undercurrent of the market has the potential to outweigh the high valuations. The rally is now being led by the private largecap banking stocks whose valuations are fair even after the recent run up. The big FII buying of Rs 5484 crores yesterday is largely due to the massive delivery based buying in banking stocks led by HDFC Bank.”
“This delivery based buying may sustain for a few more days imparting resilience to the market. The FIIs with 3.78 lakh long contracts have taken a ‘u’ turn in their market approach from the big short contracts in early June. Decline in the US 10-year bond yield to 4.35 % and the dollar index declining to 105.29 are positives for fund inflows,” he noted.
“Market will start responding to the Q1 results which will start flowing in from next week. Financials are set to post good numbers. Credit growth of Bajaj Finance is excellent and this augurs well for the stock,” Vijayakumar added.