Nifty settles above 16k, Sensex zooms 873 points
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Rebound prospects propel indices to new peaks; Retail investors-led rally take key indices to fresh high
Mumbai: The BSE Sensex skyrocketed 873 points to a fresh closing peak, while the NSE Nifty finished above the 16,000-mark for the first time on Tuesday as economic recovery hopes triggered across-the-board buying.
Rising for the second straight session, the 30-share BSE benchmark Sensex ended 872.73 points or 1.65 per cent higher at its fresh closing record of 53,823.36. Similarly, the broader NSE Nifty rallied 245.60 points or 1.55 per cent to an all-time peak of 16,130.75. Investors grew richer by Rs 2.30 lakh crore, with market capitalisation of all BSE-listed reaching a lifetime high of Rs 2,40,04,664.28 crore.
"Bulls pulled off the 16,000 mark on the Nifty effortlessly buoyed by positive news flow on GST and export data as domestic fund houses poured Rs 280 billion during the first four months of the current fiscal," said S Ranganathan, head (research) at LKP Securities.
India's exports grew 47.19 per cent to the highest ever monthly figure of $35.17 billion in July on account of healthy growth in petroleum, engineering, and gems and jewellery segments, as per official data released post market hours on Monday.
"The journey past 16,000 quite clearly has been led by the retail investors who have allocated more into equities even as FIIs sold worth Rs 95 billion during this period," he noted.
"The present rally is all the more significant since it provides enough opportunities to the new investor coming in now as several pockets of the economy still offer value going forward," he added.
Binod Modi, head (strategy) at Reliance Securities, said: "Key economic indicators like GST collection, auto sales volume and other high frequency indicators like e-way bills indicate a strong rebound in July, which indicates sustained healthy corporate earnings in subsequent quarters. Barring financials, June quarter earnings so far have been encouraging and most companies succeeded to beat consensus estimates, which offered comfort and aided to restrict sharp fall despite selling pressure in global equities."
