Sensex Takes Out 48,400 As Markets Extends Record Run Led By IT Stocks

Sensex Takes Out 48,400 As Markets Extends Record Run Led By IT Stocks

Top Nifty gainers were Axis Bank, HDFC, IndusInd Bank, HDFC Life, Wipro and TCS.

Domestic stock markets recovered initial losses to push higher on Tuesday, with the S&P BSE Sensex index rising for a tenth session in a row, though uncertainty about Senate runoffs in Georgia -- which could have a big impact on incoming US President Joe Biden's economic policies -- kept investors cautious. The 30-scrip index slid to as low as 47,903.38 in morning deals following a gap-down opening, and rebounded 582.86 points to scale a record peak of 48,486.24 in afternoon. The broader NSE Nifty 50 benchmark soared to an all-time high of 14,215.60, bouncing back 167.45 points from the day's weakest level of 14,048.15. Buying interest in financial and IT stocks was offset by selling pressure in energy and metal shares amid volatile trade.

Here are 10 things to know about the markets today:

  1. The Sensex ended 260.98 points, or 0.54 per cent, higher at 48,437.78, and the Nifty settled 66.60 points (0.47 per cent) higher at 14,199.50 — both record closing highs. (Track Sensex, Nifty Here)

  2. Axis Bank, HDFC, IndusInd Bank, HDFC Life, Wipro and Tata Consultancy Services, closing between 1.68 per cent and 6.32 per cent higher, were the top gainers in the Nifty basket of 50 shares. 

  3. ONGC, JSW Steel, Hindalco, Tata Steel and Bajaj Finance, ending between 1.60 per cent and 1.96 per cent lower, were the worst hit among 27 laggards in the index.

  4. HDFC, HDFC Bank, Axis Bank and TCS were the biggest contributors to the gain in Sensex. (Also Read: Stocks In Focus Today)

  5. HCL Technologies rose nearly 2 per cent after the company said it had completed the acquisition of Australia-based IT solutions company DWS. The Noida-based IT company had in September 2020 announced its intention to acquire DWS.

  6. "The ongoing Indian rally is supported in anticipation of Q3 results... on the earnings front, we expect green shoots due to uptrend in economic activity and record collections in GST," said Vinod Nair, head of research at Kochi-based Geojit Financial Services.

  7. Analysts also awaited financial results from IT bellwether Tata Consultancy Services (TCS) on Friday for near-term cues.

  8.  "Based on the historical standards of valuation, today, equities are at a rich level. But these levels are easily extended or cannot be comparable due to one-time economic euphoria from early vaccination, high double-digit earnings growth and high liquidity in the market," Mr Nair added. 

  9. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.34 per cent, pulling back from a record high hit in the previous session. Japanese shares lost 0.25 per cent after a media report that the government will curb business hours in Tokyo and surrounding cities from Thursday.

  10. In the US, control of the Senate is at stake with Tuesday's dual runoff elections in Georgia. A Democratic victory in both races could tip control of the Senate away from Republicans, but both contests are very tight and the results may not be immediately known, which could lead to a repeat of the chaotic vote re-counts after the U.S. presidential election last year.