Sensex surges nearly 700 points. Analysts eye 14,500 levels on Nifty2 min read . Updated: 08 Jan 2021, 05:01 PM IST
- Expect Nifty to go anywhere between 14,500 and 15,000 before the Budget, says Rusmik Oza of Kotak Securities
Indian stock markets rose sharply today with the benchmark indices Sensex and Nifty completing its longest stretch of weekly increases since 2009. Boosted by hopes of economic recovery amid coronavirus vaccine optimism and expectations of more US stimulus buoyed sentiment, Sensex surged nearly 700 points to 48,782 while NSE Nifty 50 Index climbed 1.5% to 14,347, with both gauges closing at record highs.
Heavyweights Infosys (+4%), TCS (+3%) and Reliance Industries (1.2%) led the gains. Maruti was the top gainer in the Sensex pack, rising around 6%, followed by Tech Mahindra, UltraTech Cement, PowerGrid and NTPC.
The quarterly earnings season begins today with exporter Tata Consultancy Services Ltd. due to report results.
Here is what analysts said on today's market performance:
Deepak Jasani, Head of Retail Research, HDFC Securities
"As more companies come out with their numbers, the focus could shift from index to individual stocks and peer stocks. There is still no reversal signal for the index. Another 2 odd weeks of gains seem plausible though not at the same pace."
Nirali Shah, Senior Research Analyst, Samco Securities
"Nifty now seems to be heading towards 14500 as it is lacking any significant negative events. On the downside 13950 has been established as an immediate support and a break of the same may trigger a profit-booking move in the short term. The market continues to remain overbought in the short-term and we maintain a cautiously bullish outlook unless the market breaks below 13950."
Ajit Mishra, VP - Research, Religare Broking Ltd .
"Markets will first react to TCS numbers in early trades on Monday. Besides earnings, global cues and updates on vaccine drive will also remain in focus. At present, the rotational buying across the sectors is helping the index to inch higher and we suggest aligning positions according to the trend. However, traders should avoid going overboard and keep a check on leveraged positions. Technically, the Nifty index has been trading in a rising broadening formation and the upper band of the pattern currently lies around 14,500, which may act as an immediate hurdle."
Rusmik Oza, Executive Vice President, Head of Fundamental Research at Kotak Securities
“It will be interesting to see how IT stocks react after results as earnings growth of the frontline companies, except for Infosys is expected to be in single digit. The Street is expecting IT stocks to sustain at higher levels because of the potential upward revision in future guidance. Overall, we expect Nifty-50 to report 19% earnings growth in Q3FY21 with likely upgrades coming in sectors like, automobiles, auto-ancillaries, metals & mining, cement, select banks and pharmaceuticals. Expect Nifty to go anywhere between 14,500 and 15,000 before the budget." (With Agency Inputs)