BackSensex, Nifty set new records for third consecutive day, Sun Pharma falls 12%
Sensex closed higher by 81 points, or 0.26%, to 31,109.28, while the Nifty 50 rose 9.8 points, or 0.1%, to 9,604.90. Here are the latest updates from the markets
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Mumbai: Stocks kept the record-breaking touch intact for the third day as the Sensex on Monday closed at a fresh life high of 31,109 while the Nifty settled above 9,600 for the first time ever as ample liquidity gave buying a lift.
Since a few overseas markets were closed, there were not too many triggers, which put a lid on the stocks’ advance. Amid all this, concerns over high valuations remained. Muted earnings from some blue-chip companies, including Sun Pharma, Tech Mahindra and Reliance Communications, created discomfort. But sustained buying saved the day as they brushed aside yet another missile launch by North Korea.
Opening weak, the 30-share Sensex slid below the 31,000 -mark on a string of weak quarterly earnings, but quickly bounced to yet another intra-day lifetime high of 31,214.39.
It closed up 81.07 points, or 0.26%, at a new peak of 31,109.28, breaching its previous record of 31,028.21, reached on May 26. During the day, the Sensex swung almost 345 points both ways. The index has now rallied 807.64 points in the three straight sessions.
The broader 50-share NSE Nifty settled higher by 9.80 points, or 0.10%, at 9,604.90, a new peak, beating its previous record closing of 9,595.10 recorded on Friday. Intra-day, the index touched an all-time high of 9,637.75.
“Liquidity is extending its gain to consumer-oriented stocks and sectors... This positive trend can continue in the near term, given strong domestic inflows even though valuation is high due to attractive outlook for earnings growth in future," said Vinod Nair, Head of Research, Geojit Financial Services.
Domestic institutional investors (DIIs) have been supporting the ongoing rally by pumping in sizeable capital. They purchased shares worth ₹ 1,008.56 crore while foreign portfolio investors (FPIs) sold shares worth ₹ 274.14 crore on Friday, as per provisional data from the stock exchanges.
On the sectoral index chart, FMCG jumped the most by surging 1.55%, followed by auto and consumer durables. In the Sensex space, HDFC Ltd took the first rank by rising 3.29%, followed by Hindustan Unilever 3.07%.
Other prominent gainers were PowerGrid, Cipla, ITC, Hero MotoCorp and Reliance Industries, surging by up to 2.76%. In contrast, healthcare stocks weighed. Sun Pharma plunged 11.56% to a multi-year low after the company reported a decline in consolidated net profit.
Shares of software services provider Tech Mahindra slumped 11.66% after a dismal earnings show.
Reliance Communications crashed nearly 20.54% to a record low after the company reported a quarterly loss. In broader markets too, investors were busy taking money off the table, pulling down the small-cap index by 1.53% and mid-cap by 1.03%.
Chinese markets remained shut on Monday. European stocks were a tad lower in the early part. London’s FTSE was closed for a public holiday.
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