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Thursday, November 24, 2022

World-beating Sensex breaks many records today . Updated: 24 Nov 2022, 04:23 PM IST Livemint

 Indian stock market benchmark Sensex today hit a new high today on the monthly expiry day of derivative (F&O) contracts , driven by a rally in IT companies. Global markets were also higher after minutes from Fed's latest meeting suggested that the US central bank may slow the pace of interest rate hikes. The Sensex rose 900 points to a new intra-day high of 62,412, breaking previous record of 62,245, hit on October 19, 2021.

The Sensex settled 762 points higher at 62,272, also the its first close above 62,000. The broader Nifty50 index soared ended 1.2% higher at 18,484. IT stocks were in limelight today with WiproInfosys, HCL Tech, TCS and Tech Mahindra jumping between 2% and 3.5%.

The broader markets however saw limited traction today with BSE midcap and smallcap indices rising 0.5% and 0.4% respectively.

“Markets staged a strong upmove on the monthly expiry day and gained over a percent. After the gap-up start, the benchmark indices gradually inched higher and gained noticeable momentum in the last half an hour. Consequently, Sensex made a new record high and Nifty also inched closer to that milestone and closed at 18,484 levels. All sectors contributed to the move wherein IT outshined others. The broader indices also posted modest gains but the participation was restricted. Markets have reclaimed buoyancy and we expect the tone to continue. However participants shouldn’t go overboard and continue with selective buying," said Ajit Mishra, VP - Technical Research, Religare Broking Ltd.

“The banking and IT pack look firm to us while others are seeing a mixed trend. We reiterate our preference for index majors and quality midcaps and suggest focusing more on overnight risk management," he added.

Up 7% this year, the Sensex is on course for a seventh straight annual advance. Its gain is the biggest among benchmarks in countries that have stock markets valued at at least $1 trillion, according to Bloomberg.

Minutes from the Fed's November rate-setting meeting showed that a "substantial majority" of policymakers agreed it would "likely soon be appropriate" to slow the pace of rate hikes.

“Benchmark Indices ended on a strong note with Sensex closing at a record high ed by latest Fed minutes which indicated that rate hike cycle may slow down. Also the decline in dollar index and crude prices aided the upward momentum in the market. Overall we believe that Indian markets are trading in a positive trend backed by strong corporate earnings, easing supply constraints, cooling commodity prices and strong demand across various sectors. Investors should use any significant dip as a strong opportunity to buy in these markets," said Mohit Nigam, Fund Manager & Head - PMS, Hem Securities.

On the technical front, immediate support and resistance in Nifty 50 are 18300 and 18600 respectively. Immediate support and resistance in Bank Nifty are 42500 and 43500 respectively.

The rupee also got a boost amid broader dollar weakness. The Indian currency ended at 81.63 per dollar against its previous close of 81.84. India bond yields also eased. The benchmark 10-year government bond yield ended at 7.25% versus its close of 7.2910% on Wednesday.








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