Sensex makes another dash towards 50,000 with 1,200-point rally in 2 days2 min read . Updated: 20 Jan 2021, 04:45 PM IST
- Reliance Industries and Infosys led the gains today
- At day's high, Sensex was just 125 points away from 50,000 mark
Indian markets finished at a record high today, led by gains in IT and auto stocks, amid positive global cues after US Treasury Secretary nominee Janet Yellen advocated for a huge fiscal relief package. The Nifty 50 index finished 0.9% higher at 14,649 while Sensex settled nearly 400 points higher at 49,792, after hitting 49,874 at day's high. In the previous session, Sensex had jumped over 800 points.
Among the Sensex stocks, Maruti and Tech Mahindra rose nearly 3% while M&M, Asian Paints, Reliance Industries and Infosys gained between 1.5% and 2%.
"Nifty made a new intra day high reflecting the underlying strength in the indices. Its close was the highest ever. Volumes after rising post Jan 04, have come back to normal. Institutional buying (especially FPI) has gradually slowed however neither the institutions nor the non-institutional participants seem to be in a hurry to take profits even as the Budget looms ahead," said Deepak Jasani, Head of Retail Research, HDFC Securities.
At her confirmation hearing on Tuesday, Yellen urged US lawmakers to "act big" on the next coronavirus relief package, lifting global markets. US President-elect Joe Biden, who will be sworn into office later today, last week laid out a $1.9 trillion stimulus package proposal to boost the economy.
Here is what analysts said on today's market rally:
Sahaj Agrawal, Head of Research- Derivatives at Kotak Securities
“Markets staged a smart recovery from 14300 levels and now trade around 14650. We continue to believe the undertone remains positive for the medium term; for the short term the momentum parameters are stretched and require some sustained correction/time consolidation to neutralize. Expect volatility to rise in the near term. Energy, Banking and FMCG remain preferred sectors with gradual accumulation advisable. Buying on meaningful corrections is advisable; traders are advised to keep leverage under check for the near term."
Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments
"We have successfully closed well above the 14550-14600 resistance patch. We should now be headed to 14800-14900. Good support has been created at 14200. Keeping that as a stop level, traders can time their long positions in the Nifty. A buy on dips strategy would be a prudent approach."
Ashis Biswas, Head of Technical at CapitalVia Global Research Limited
"The market witnessed some strong trends and an attempt to overcome the resistance level around the Nifty 50 Index level of 14600. While sustaining above 14600 is the key factor from a short-term perspective, it opens the gate for a movement till 14800/14930."