As benchmark indices scaled new highs in trade on Wednesday, the sheer buoyancy of stock prices even in the broader markets made several seasoned investors waiting on the sidelines for a meaningful correction mere speculation, said S. Ranganathan, Head of Research at LKP Securities.
The domestic indices ended Wednesday’s session after hitting fresh all-time highs during the day. The NSE Nifty 50 soared 54.70 points or 0.82 per cent to 18,972.10, while the BSE Sensex surged 499.39 points or 0.79 per cent to 63,915.42.
The Financial Services Index almost kissed 20K on Wednesday to register yearly highs as credit demand is picking up even as the monsoon is seen covering lost ground in several parts of the country. Investors also witnessed a listed airline in India cross a market cap of Rs 1 lakh crore in Wednesday’s trade, Ranganathan said.
Domestic equities had a dream run on Wednesday with Nifty and Sensex scaling lifetime highs at 19,006.7 and 64,037 levels, respectively. The index remained in momentum throughout the session to close with handsome gains of 155 points (+0.8 per cent) at 18,972 levels. Even Nifty Bank made a new high of 44,508 levels. All sectors ended in green with strength seen in metals, pharma, and oil and gas.
Siddhartha Khemka, Head-Retail Research, Motilal Oswal Financial Services, said after making several attempts in the past few days, Nifty finally managed to cross its previous highs. Strong institutional flows, healthy macros, and robust earnings growth drove the domestic market toward its new highs.
Further, robust US consumer and home sales data soothed the investors’ sentiments.
“With the onset of the monsoon and RBI taking a rate pause, we expect market momentum to continue and remain buoyant,” Khemka said.