Sensex 300 points away from 50,000, Bank Nifty hits record high: 10 updates2 min read . Updated: 13 Jan 2021, 10:18 AM IST
- ICICI Bank and SBI led the gains among banking stocks
- The decline in CPI inflation to 4.59% is a big positive for markets, say analysts
Banking stocks led the gains today as benchmark index Sensex remained about 300 points away from 50,000 level. Bank Nifty index was up 1%, hitting a new high of 32,683. Among banking stocks, ICICI Bank was up 2% while Axis Bank rose 1% while Bank of Baroda and SBI led gains among the PSU lenders, rising about 4% and 3% respectively. Sensex was up over 200 points at 49,728 while Nifty was up 0.6% at 14,636.
Here are 10 updates:
1) A fall in vegetable prices helped India's retail inflation to ease in December to within the central bank's 2% to 6% target range, although some economists said that RBI is unlikely to cut the policy repo rate soon.
2) Shares of Bharti Airtel rose 5% and was the biggest boost to the Nifty 50 index after the company said on Tuesday it was initiating process to revise foreign investment limit up to 100%.
3) "The decline in CPI inflation to 4.59% is a big positive for markets. But the steady rise in crude is an area of concern. Looks like Sensex is headed for 50000," said Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
4) "The market is likely to turn highly volatile during the budget. Since valuations are high and investors are sitting on good profits, partial profit booking can be considered at every rise. It is impossible to time the market," he added.
5) Meanwhile, the Supreme Court on Tuesday ordered an indefinite stay on the implementation of new agricultural laws that have triggered widespread protest from farmers.
6) IT heavyweight Infosys will announce its quarterly results later today. Infosys shares were up 0.4%.
7) "Nifty is in the bull trend. Any trend reversal will occur if it closes below 14470. The demand zone is 14530-14490. On the higher side, one can see 14620-14684 as a potential intraday resistance. If Nifty manages to cross 14684 then, it will move towards the resistance of 14718," said Vishal Wagh, Head of Research, Bonanza Portfolio Ltd.
8) Asian markets were mostly higher today with hopes for another vast US virus relief package offset by political upheaval in Washington and surging virus cases.
9) US President elect Joe Biden "is expected to announce the details of his Covid relief plan.
10) "We have achieved the 14600 levels. The key resistance patch is now between 14650-14750. It needs to be seen how markets react here. Is it going to resist or fly out of those levels like all other resistance levels have been treated over the past couple of months? If we can get past the 14750 levels on a closing basis, we should be headed towards 15000. The current support range for the Nifty is 14200-14250," said Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments. (With Agency Inputs)