OPEN APP
Home >Markets >Stock Markets >Nifty closes at record high on Street optimism

The stock markets settled marginally higher on Thursday, the day of monthly derivatives expiry, with the benchmark Nifty closing at a record high on falling covid cases and positive earnings surprises.

The 30-share BSE Sensex index settled at 51115.22 points, up 0.19%. The 50-share Nifty ended 0.45% higher at 15,337.25, crossing its previous high on 15 February, and is now around 94 points away from its all-time intra-day high.

“Domestic equities have been mostly resilient throughout the second wave as absence of national lockdown, availability of vaccine and continued industrial/manufacturing/infrastructure activities albeit at slow pace with favourable supply chain offered comfort to investors. A sharp drop in daily caseload and improvement in recovery rates have emboldened investors in the last one week. Further, robust Q4FY21 earnings and favourable commentaries from managements also lifted sentiments," said Binod Modi, head of strategy at Reliance Securities.

Going forward, an expected phased withdrawal of state-level curbs in coming weeks and recovery in activity can potentially aid market to sustain the rally in the near to medium term, Modi added.

The continued surge in domestic equities and asset price inflation despite the economic contraction in the wake of the pandemic poses the risk of a bubble, RBI said in its FY21 report released on Thursday. “RBI’s warning of the risk of a bubble in the equity market in its annual report made the market cautious, forcing it to end flat on the day of the monthly F&O expiry. High liquidity does help the market and RBI has reaffirmed supportive stance till the economy recovers" said Vinod Nair, head of research at Geojit Financial Services.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout