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Indian markets scale life-time peaks powered by BPCL and Reliance Industries

Indian markets scale life-time peaks powered by BPCL and Reliance Industries
  • India’s benchmark indices Sensex and Nifty50 overcame early-morning jitters to scale new peaks – at 62,701 and 18,614 respectively.
  • Both the indices also registered new record closings on Monday.
  • Bharat Petroleum and Reliance Industries emerged as the top gainers on the Nifty50, adding ₹62,700 crore in market capitalisation.
  • A cool down in crude oil prices, healthy flows in SIPs and resilient performance by India Inc in Q2 are some of the factors driving the indices, analysts said.
  • Analysts recommend investors remain disciplined and balanced in their approach to equity investments, instead of making any extreme movements.
India’s benchmark indices Sensex and Nifty50 came off new life-time peaks to close higher on Monday, buoyed by the oil and gas sector while shrugging off negative cues from Asian markets. State-run Bharat Petroleum (BPCL) and Reliance Industries emerged as the top gainers, while metal stocks dragged.

The Sensex and the Nifty50 overcame early-morning jitters to scale new peaks – at 62,701 and 18,614 respectively, making it the fifth consecutive day of gains.

The indices outperformed Asian markets and closed up 0.27-0.34% higher – marking a record high closing for the Sensex and the Nifty50 at 62,505 and 18,563 points, respectively.

Amongst the key triggers driving the indices are a cool down in crude oil prices, healthy flows in systematic investment plans (SIP), and resilient performance by India Inc in Q2, analysts said.

Brent crude oil prices were hovering around $81 per barrel, falling 3.2% today on worries about demand from China as the country sees a rise in Covid-19 cases.

“Nifty clocked fresh all-time highs on November 28 going against the global cues. Progressive and prudent macro policies, resilient corporate earnings in Q2FY23, robust tax collections, early signs of recovery in IIP and GDP and first signs of cooling inflation have all excited investors including FPIs (foreging portfolio investors) to keep pumping money into the markets,” said Deepak Jasani, head of retail research, HDFC Securities.

Amongst the major sectoral gainers were fast moving consumer goods (FMCG), auto and PSU banks. While the IT sector was amongst the top gainers earlier in the day, it closed marginally in the red. Metal stocks lost shine today, with the index declining 1.14%.

The Rupee closed flat at 81.66, against 81.68 on Friday.

Bharat Petroleum, Reliance Industries, Hero MotoCorp, Tata Consumer, and SBI Life were the top gainers on the Nifty50 index today – gaining between 1.84% to 5.04%.

Bharat Petroleum and Reliance Industries together added ₹62,700 crore in market capitalisation.

Here are the top gainers and losers on the Nifty500 index on Monday:


Analysts recommend discipline and balance

Analysts recommend investors remain disciplined and balanced in their approach to equity investments, and refrain from making any extreme movements.

“Indian markets are defying global weakness and touching all-time highs. This is on the back of renewed interest from foreign institutional investors as the Indian decoupling story continues to play out. However, one must also realise that as we continue to see better growth rates than the world, our valuations too are priced at those premiums,” said Srikanth Subramanian, CEO, Kotak Cherry.

On the BSE, advances outnumbered declines – 1,185 stocks ended higher while 815 closed in the red.

Asian markets see red

Most of the major Asian markets declined on Monday, with Hong Kong’s Hang Seng index posting the biggest decline at 1.57% and Taiwan’s TWSE Capitalization Index posting a 1.5% fall. The Shanghai Composite Index closed 0.75% in the red, while South Korea’s KOSPI fell 1.21%.

“Global stock markets traded lower after a series of protests in China over the weekend, against strict mobility restrictions to combat the country’s ongoing Covid outbreak, hit sentiment and threatened to weigh on economic activity,” Jasani said.

Buoyant festive demand, cooling crude oil prices amongst tailwinds for Indian economy

According to Ajay Menon, MD and CEO, broking and distribution, Motilal Oswal, the buoyancy in festive demand, which has boosted the auto sector among others, is expected to continue thanks to the marriage season. This year’s festive season was also the first uninterrupted one since 2020, giving buyers enough reason to splurge.

For instance, the auto sector has seen registrations of passenger vehicles, commercial vehicles and tractors for October rise 35-66% from the 2019 levels.

On the jobs front, too, around 4,000 openings were posted every day during the festive season, which saw the creation of 2 lakh jobs.

Foreign institutional investors (FII) were net buyers on Monday, ploughing in ₹936 crore, while domestic institutional investors (DII) bought equities worth ₹88 crore.


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