The BSE Sensex was up 568.90 points or 0.94% at 61,305.95. The Nifty was up 176.80 points or 0.97% at 18,338.55. Other markets in the Asia-Pacific also ended the day higher
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Indian stock markets continued the rally on Thursday with both benchmark indices hitting record highs. The BSE Sensex rose 568.90 points or 0.94% to 61,305.95, while the Nifty was up 176.80 points or 0.97% to 18,338.55. Other markets in the Asia-Pacific also ended the day higher with Japan’s Nikkei and South Korea’s Kospi rising 1.5% each.
According to Milind Muchhala, executive director, Julius Baer, Indian markets are displaying strong buoyancy despite the volatility in the US markets on account of hardening of bond yields, and concerns over peaking of growth and building up of inflationary pressures following the sharp increase in energy costs.
“We have been seeing small intermittent corrections in the market at sectoral level, rather than at the headline index level. Domestic sentiment is clearly getting supported by the various measures being taken by the government to address some of the impending issues across various sectors," Muchhala said, adding disappointments in September quarter earnings may lead to some intermittent volatility. Investors will keep a close watch on company results and management outlook to see whether earnings growth justifies share-price gains during the sizzling stock-market rally this year. High raw material costs, including fuel, and supply shortage of key components such as computer chips are expected to crimp profit margins in the Q2. Corporate earnings for the September quarter is likely to be led by select sectors supported by the recovery in domestic demand, given that post-covid economic recovery has been uneven since the easing of lockdown restrictions. The India volatility index or VIX fell 2.06% ending at 15.77 on Thursday indicating investors are not expecting severe market corrections.
“Bulls continued to remain in charge of Dalal Street amid volatility. While there is not much negative triggers, macroeconomic trends are improving month-on-month,"said Siddhartha Khemka, head, retail research, Motilal Oswal Financial Services.