Key benchmark indices remained volatile, but settled at record closing highs yet again on Tuesday, as banking and IT stocks lifted the market mood.
The S&P BSE Sensex swung in a range of 502 points, hitting an all-time high of 65,673 in the intra-day trade. It, eventually, settled 274 points, or 0.42 per cent, higher at 65,479. The broader Nifty50, too, closed 66 points, or 0.34 per cent, higher at 19,389. It hit a lifetime high of 19,434 during the day.
The benchmarks were supported by a steep rally in Bajaj Finance (up 7 per cent), Bajaj Finserv, Hero Moto, Tech M, TCS, Wipro, Sun Pharma, Kotak Bank, Infosys, Cipla, HCL Tech, SBI, HDFC twins, and ICICI Bank.
In the broader market, the Nifty MidCap 100 and SmallCap 100 ended the day on a mixed note with the former slipping 0.23 per cent.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said: “The unabated surge in FPI inflows will keep the market resilient. The sharp U-turn in FPI investment from Rs 34146 crores of selling in the first two months of this year to Rs 90986 crores of buying in the last two months has turned the market decisively in favour of bulls. The surge in the market during the last 4 sessions was led mainly by the HDFC twins and RIL with some support from ITC. It is important to remember that these stocks have strong and improving fundamentals. Bajaj Finance can contribute to this select large-cap led rally since the company has reported 34% YoY growth and 9% QoQ growth in AUM. This is also a leading indicator of the resilient credit growth in the economy.”
“It makes sense to remain invested in this strong market which has taken most market participants by surprise. Optimism is fine but there is no room for exuberance since valuations do not allow an unabated rally,” he said.
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