Mumbai, Aug 4 (SocialNews.XYZ) Faster economic rebound, as shown by healthy macro-data, along with estimates of a possible less severe third Covid wave, lifted India's equity indices to record high levels on Tuesday, with the Nifty50 breaching the 16,000-mark.
Besides, healthy macro-economic data as well as better-than-expected quarterly results boosted investor sentiments.
The S&P BSE Sensex hit an intra-day record level of 53,887.9 points, while the Nifty50 touched a new high of 16,146.90 points.
In the process, India's markets outperformed their Asian peers who were mixed in a small band.
The surge into record highs was accompanied by volumes that were nominally higher than recent averages.
Among the sectors, capital goods, banks, auto and telecom were the main gainers.
Consequently, the Sensex ended the day's trade at 53,823.36, higher by 872.73 points, or 1.65 per cent, from its previous close.
Similarly, the Nifty50 on the National Stock Exchange closed at 16,130.75 points, higher by 245.60 points, or 1.55 per cent, from its previous close.
"Nifty brushed past the 16,000 levels easily and closed higher. However, volumes and 'AD' ratio (equal on such a day) do not give confirmatory signals," said Deepak Jasani, Head of Retail Research at HDFC Securities.
"Hope that India will be a beneficiary of the recent troubles faced by China is keeping sentiments upbeat. While valuations seem high, there is no point in pre-empting a top, but rather wait for signs of medium-term change in trend," Jasani added.
According to Geojit Financial Services' Head of Research, Vinod Nair: "Progressive economic data, indicates strong rebound from impact of the second wave. All major domestic data like PMI index, GST collection, corporate earnings, export data, etc. favour a strong recovery.
"This has added euphoria in domestic market reaching new highs along with context to a drop in global risk after the accommodative monetary and fiscal policy announcements. A similar monetary policy is expected from the ongoing RBI meeting."
Sneha Poddar, AVP, Research, Broking & Distribution, Motilal Oswal Financial Services, said: "What really provided support to the market was the 1QFY22 earnings report which begun on a very healthy note despite the Covid 2.0 impact.
"It helped the market to largely sail through the headwinds of a possible third Covid wave, commodity led inflation and volatility around the US Fed taper talk. Management commentaries across the board suggest an improved demand environment post June 2021, led by the easing of restrictions, lower active Covid-19 cases, and a pickup in vaccinations."
Source: IANS
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