Foreign fund inflows lift key equity indices, financial stocks rise

Mumbai, Dec 7 (SocialNews.XYZ) Healthy foreign fund inflows, along with strong buying support for the financial sector stocks as well as positive global cues, lifted the key Indian equity indices on Monday.

Both the two key indices -- NSE Nifty50 and S&P BSE Sensex -- reached new record intra-day highs.

The S&P BSE Sensex rouched a record intra-day high of 45,458.92 points, while the Nifty50 on the National Stock Exchange touched new reord high of 13,366.65 points.

Furthermore, the Indian markets received healthy foreign inflows of Rs 3,792.06 crore.

Buying was witnessed in media, PSU bank, pharma, infra and FMCG stocks.

However, global shares fell on Monday as growing risks of a no-deal Brexit that hit the pound hard and fresh Sino-US tensions led traders to take profits from higher levels in early trade.

Back home, progress on the Covid vaccine led to the extension of the rally despite weak global cues as the Serum Institute of India said it has made the first formal application for emergency use approval for the AstraZeneca vaccine.

The NSE Nifty50 gained 97.20 points, or 0.73 per cent, to close at 13,355.75 points.

The S&P BSE Sensex ended at 45,426.97 points, up 347.42 points, or 0.77 per cent, from its previous closing.

"Indian benchmark equity indices began a new week on a positive note continuing their upward momentum and ending at fresh record closing highs on December 7," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"Global cues have however turned cautious. Nifty may have another 100-150 odd points to rise before a correction sets in. In the meanwhile, stock or sector rotation continues."

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said: "Globally, investors would track progress on US stimulus which is again gaining momentum. ECB interest rate decision this week would also be kept on radar."

"Technically too, Nifty formed a bullish candle on daily scale and continues forming higher highs - higher lows from the last six trading sessions. Now it has to hold above 13,200 to witness an up move towards 13,500-13,750 levels while on the downside, major support exists at 13,000."

Vinod Nair, Head of Research at Geojit Financial Services said: "The market started this week continuing its winning streak, much of the momentum was from pharma and small caps stocks, the broader market is outperforming the main indices."

"European stocks have turned focus to the on-going post Brexit trade deal between the UK and EU, trading a bit cautiously. We expect the domestic market to remain strong backed by vaccine progress, economic recovery and strong FII inflows.

"However, it is advisable for investors to consider partial profit booking in pockets trading very expensive like highly valued large caps and trade vigilantly on small and micro caps though the momentum is expected to remain positive in the short to medium-term."

Source: IANS