Bulls retained control over Dalal Street on first day of the truncated week as equity benchmarks posted biggest one-day gains in last two months with the Sensex climbing 481 points intraday despite mixed global cues. Hopes of more inflow of foreign money on likely delay in Fed rate hike after weaker-than-expected US jobs data lifted the market sentiment. After a long weekend, the market continued its last week’s rally.
The 30-share BSE Sensex hit an intraday high of 29,013.40, before ending 445.91 points or 1.56 percent higher at 28,978.02, the highest closing level since April 13, 2015.
The 50-share NSE Nifty surged 133.35 points or 1.51 percent to end at highest closing level of 8,943 since March 2015. It touched day’s high of 8,950.85, driven largely by banks and auto stocks.
Experts expect the FII inflow may continue in medium term as the rate hike is unlikely by end of 2016.
The liquidity-driven global markets are pricey at current levels, but the uptick is expected to continue for a while longer, believes Andrew Holland of Ambit Investment Advisors.
According to him, the Nifty can try testing previous highs of 9,100 as fundamentals in India are still looking good, which is not the case globally.
Shyamsunder Bhat of Exide Life Insurance doesn’t sense any near-term negative triggers that may affect the markets. If any correction takes place then that is expected to be shortlived, he says.
More to come…