Stock market update: Financial shares surged today with Bajaj Finserv, Bajaj Finance and HDFC among the top gainers in the Sensex pack
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Indian stock markets surged today to hover hit record highs, boosted by banking and metal stocks. Global markets were also higher as investors took a slightly hawkish tilt by the US Federal Reserve in their stride. The Sensex was 900 points to hit a new high of 59,850. The market cap of BSE-listed stocks zoomed by ₹3 lakh crore today. The broader Nifty was up over 1.5% and traded above 17,800 levels.
Here are key updates from today's market:
The Fed said last night it will likely begin tapering its monthly bond buying as early as November, and indicated it could raise interest rates more quickly than expected.
But "the ferocity of the ongoing bull run is evident from the response of the US market to the Fed announcement. The Dow, Nasdaq and S&P 500 spiked around 1% when the Fed indicated that ‘moderation in the pace of asset purchases may soon be warranted’. This bullish response to a mildly hawkish Fed is surprising but indicative of the strong bullish undercurrent," says VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Financial shares surged today with Bajaj Finserv, HDFC and Axis Bank rising between 2% and 5%.
"The confusion even among smart money is evident in the off and on nature of FII and DII investment with FIIs turning sellers ( ₹1943 cr) and DIIs turning buyers ( ₹1850 cr) in the cash market yesterday - a reversal of their position a day ago. Meanwhile, the Evergrande crisis appears to be receding as of now. This bull market has been easily climbing all walls of worries surprising even diehard bulls. Now, we don't know how long the party will go on," he added.
Indian rupee appreciated today despite broad dollar strength. The rupee was higher at 73.87 vs previous close of 73.87 against the US dollar.
Manish Hathiramani, proprietary index trader and technical analyst at Deen Dayal Investments, said: “The Nifty has zoomed past 17600 with a gap opening. If we can sustain this on a closing basis, it is a positive sign for the markets. We could scale higher to 17900. A good support lies at 17200 and as long as we do not break that, the overall trend continues to remain positive."