Indian stock market climbed to a record high on Tuesday on the back of positive sentiments fuelled by declining fiscal deficit, rising tax collections and ease of Covid-19 restrictions. The 30-share index Nifty hit 16,000 for first time on August 3. “Indian equity benchmark indices Nifty has hit much awaited 16000 marks in today’s session making a new high and traded comfortably above this phycological level. Today’s move was special as it was achieved despite muted global clues and continuous selling from FIIs. We are in the initial phase of the exuberant bull run which is well supported by earning improvements, record tax collections, and participation of new investors will surely help Nifty to trade above 17,000 in short run," said Sandeep Matta, founder, TRADEIT Investment Advisor.
Sensex also soared to a new record high of 53,478.5 levels, up 500 points. HDFC, Tata Consultancy Services (TCS), Infosys and Titan were the biggest contributors to the gain in the 30-scrip S&P BSE Sensex index. The four together contributed 200 points to the rise in the index.
All you need to know about Nifty and Sensex Touching All-Time High
1) On Tuesday, Nifty50 index hit soared to fresh record peak of 16,016, up 133 points. Titalm Sun Pharma, Bharti Airtel, HDFC were among the top performing stocks on Tuesday. Nifty had earlier touched 15,000-mark on February 5, 2021.
2) “This surge in the market is backed up with strong performances from industry leaders like HDFC from banking , and TCS and Infosys from the IT pack. Big support is coming from FMCG giants like UBL, Britannia and Marico," said Rahul Sharma of Equity99.
“Nifty Pharma is also supporting the current bullishness as big counters like Sun Pharma and Lupin both are trading very strong today… Now 16,000 will be the next hurdle point for Nifty50. If we get a closing above the 16K mark, levels of 16,100-16,150 will act as resistance," he added.
2) “After a long consolidation, we have seen further breakouts in Tuesday’s trading session wherein the index Nifty50 made new highs. If the index breaks the 16,000 level on a closing basis, a strong upside move can be seen till 16,200-16,500 levels. Overall, the Nifty50 index moved approximately 500 points in five months. Now, there is a possibility of a move of another 500 points in the next five days, as after a long consolidation we have seen this breakout," said Sumeet Bagadia, executive director, Choice Broking.
4) In sync with the benchmarks, the BSE midcap and smallcap indices also scaled record highs, advancing up to 0.5 per cent, to 23,443 and 27,232, respectively.
5) S&P BSE Sensex also touched a new high of 53,390 levels, up 440 points on Tuesday. HDFC, Tata Consultancy Services (TCS), Infosys and Titan were the biggest contributors. On the other hand, ICICI Bank and Tata Steel were among the stocks weighing on Sensex.
Many other Asian markets traded lower amid concerns of rising coronavirus cases. Hang Seng and Nikkei fell up to a percent, while Shanghai Composite Index traded flat.
“There is no sign of topping out yet and market are in the early stage of equity bull run which may take Nifty to 21,000 level before witnessing a significant correction. Core market segment such as Bank nifty, Auto, Financial sector are the major laggards which are still away from their recent high and will try to catch up the rally. Yes, there could be few corrective sessions in between however the same will be considered as buying opportunity," Matta added.