Stock Market Updates: The S&P BSE Sensex index touched an all-time high of 47,154.27 in early trade.
Domestic share markets registered new record highs in early trade on Monday tracking gains in Asian equities, as investors remained optimistic about COVID-19 vaccines and additional stimulus in major economies to battle the pandemic. The S&P BSE Sensex index jumped 381.17 points, or 0.81 per cent, to touch 47,354.71 at the strongest level of the day, and the broader NSE Nifty 50 benchmark climbed to as high as 13,865.45, adding 116.2 points, or 0.85 per cent, from its previous close — both all-time highs. Gains across most sectors — led by financial shares — supported the upmove in the markets.
Here are 10 things to know about the markets today:
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At 10:53 am, the Sensex traded 270.75 points, or 0.58 per cent, higher at 47,244.29 while the Nifty was up 85.45 points, or 0.62 per cent, at 13,834.70. (Track Sensex, Nifty Here)
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Forty seven stocks in the Nifty basket of 50 shares traded in the positive territory.
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Tata Motors, Coal India, JSW Steel, Tata Steel and SBI, trading between 1.41 per cent and 3.72 per cent higher, were the top percentage gainers in the index. (Also Read: Stocks To Watch Today)
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Reliance Industries, HDFC Bank, Infosys and ICICI Bank were the biggest boosts for Sensex. (Also Read: Rangebound Trade, Volatility Likely In Markets As Year Comes To A Close, Say Analysts)
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Foreign institutional investors (FIIs) have fuelled the recent rally in the domestic markets, having net invested Rs 62,648 crore into Indian capital markets so far this month, including Rs 56,643 crore in equities alone, according to NSDL data. With this, December is on track to become a third straight month of net inflows into the capital markets.
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“Normally, FII inflows are weak in December. But this year has been an exception. The declining dollar, expectations that it will decline further in 2021, the historical low interest rates and the Federal Reserve’s commitment to keep rates low through 2023 are the factors behind this relentless FII inflows. This trend is likely to continue in the coming days too unless the US central bank indicates tapering its bond buying program,” VK Vijayakumar, chief investment strategist at Kochi-based Geojit Financial Services, told NDTV.
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“The Nifty is likely to be around the current levels at the end of the year,” Mr Vijayakumar added.
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The markets took support from gains across Asian markets, with MSCI’s broadest index of Asia Pacific shares outside Japan trading 0.12 per cent higher at the last count. Japan’s Nikkei 225 benchmark was up 0.61 per cent.
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Stocks have tended to perform well in the last five trading days of December, and the first two of January, a phenomenon known as the Santa Claus rally which has lifted equities in 55 out of 74 years since 1945, according to CFRA Research. This year, the period started on December 24.
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The average Santa Claus rally has boosted the S&P 500 by 1.3% since 1969, according to the Stock Trader’s Almanac. Overall, a year with a Santa Claus rally is followed by an annual 9.7% average gain in the S&P 500 the following year, compared with a 9% average gain in the S&P 500 in all years, according to CFRA Research.
