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Domestic stock markets continued their bullish trend and hit another new high on Wednesday on the back of continued foreign fund inflows, stable earnings, and strong global signals.
The benchmark Sensex rose 0.45 percent, or 302.3 points, to settle at 67,097.44 for the first time. This was the fifth consecutive trading session when the Sensex closed at a new high. The broader Nifty index rose 83.9 points, or 0.42 percent, to close at 19,833.15 on Wednesday. Interim data from BSE showed that foreign portfolio investors (FPIs) bought Rs 1,165.47 crore of local stocks on Wednesday. Foreign investors have injected Rs 1.13 crore into the stock market so far in 2023.
“The record-breaking market wave has continued on Dalal Street as we are in the midst of a strong bullish wave supported by strong inflows of foreign funds, strong growth prospects, even pervasive monsoons and stable corporate earnings so far, adding to the appetite,” said Shrikant Chouhan, Head of Research. (Retail), Kotak Securities Ltd. Technically, Nifty got support near 19725 and recovered sharply.
The index formed a higher bottom on the intraday charts which indicates further upside from current levels. As long as the index holds 19725, the positive sentiment is likely to continue. Further, the market may go up to 19,950-19,975, he said. All sectors closed in positive territory, except for the IT sector.
PSU Bank, Consumer Durables and Financials were the main gainers on Wednesday. Banking stock remains in the spotlight after IndusInd Bank and Bank of Maharashtra reported good Q1 results.
Among the NSE group, the top gainers were NTPC, Bajaj Finance, Ultratech Cement and Bajaj Finserv. The losers were led by Hindalco, Hero Motocorp, TCS, Bajaj Auto and Maruti.
Bank Nifty shares rose 0.57 percent, or 258.45 points, to end the session at 45,669.3 points.
Nifty Bank, which closed the day at 45669, formed a hanging man like a candlestick on the daily chart. Short covering was observed at 45300, 45400 and 45500 strike areas. Ashwin Ramani said, “A strong close above 45700 could take Nifty Bank to 46000 areas while Negative support is placed at 45,500.”
According to Siddhartha Kimka, Head of Retail Research, Motilal Oswal Financial Services Ltd, the momentum in the domestic market is likely to continue in the near term given the booming domestic signals and easing global concerns.
On Thursday, the markets will react to the weekly option expiration and results of Infosys and Hindustan Unilever Ltd (HUL).
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