Global cues, FII inflows lift equity indices to new highs

New Delhi, Dec 16 (SocialNews.XYZ) Strong buying support, combined with influx of fresh foreign funds, lifted the key Indian equity indices to close at new highs on Wednesday.

India's market had a "gap up" opening.

Subsequently, the NSE Nifty50 reached a record high of 13,692.35, while S&P BSE Sensex touched 46,704.97 points level, following a strong market sentiments globally.

In terms of sectors, realty, metal, auto and pharma indices were major gainers, while PSU banks were the main loser.

Broader market indices -- Smallcap and Midcap -- rose more than NSE Nifty50.

Globally, stocks rose to record highs as the safe-haven US dollar reached its lowest level in more than two and a half years on the growing prospects of an effective coronavirus vaccine and more fiscal stimulus.

Back home, foreign investors pumped in liquidity worth Rs 1,981.77 crore on Wednesday, while volumes on the NSE were in line with recent averages.

Consequently, S&P BSE Sensex closed at 46,666.46, higher by 403.29 points, or 0.87 per cent, from the previous close.

The Nifty50 ended the day's trade at 13,682.70, higher by 114.85 points, or 0.85 per cent, from the previous close.

"Nifty continues its uptrend with a series of upgaps which are yet to be filled," said Deepak Jasani, Head of Retail Research at HDFC Securities.

"This shows the strength of the current upmove and also indicates that whenever the correction starts all the recent upgaps may have to be filled. 13,800-13,900 is the cluster resistance zone for the Nifty."

Vinod Nair, Head of Research at Geojit Financial Services, said: "Indian market is effortlessly rallying to record highs on a daily basis tracking firm global markets."

"Increasing prospects of US stimulus measures, hopes of an effective vaccine and a conclusive Fed meeting to announce a positive policy are lifting market sentiments across the globe. In the domestic market, all sectors witnessed good momentum with realty leading the rally in hopes of a revival in demand."

S. Ranganathan, Head of Research at LKP Securities, said: "Bulls wrested complete control during the day with consumer-facing companies witnessing good appetite from investors post the thumping success of the QSR IPO recently."

"Markets are absorbing profit booking too which is a very healthy sign as the mood seems buoyant with good appetite seen at lower levels. Defence stocks too were in the limelight today as investors sought value in many stocks across the sector."

Source: IANS