Indian markets are at a historic high led by broad-based buying across sectoral indices along with positive global cues that added to bullish sentiments. Investors have reacted to US inflation data and concerns have cooled down amid expectations that consumer price pressure is likely to be transitorily resulting in scope for ongoing central-bank support. On the domestic front, index heavyweight Reliance Industries contributed significantly to the upside on Sensex and Nifty. Metal stocks outperformed.
At around 09.39 am, Sensex was trading at 52,590.67 up by 290.2 points or 0.55%. Nifty 50 was trading at 15,823.80 up by 86.05 points or 0.55%.
The 30-scrip index has hit a lifetime high of 52626.64 a few minutes ago. Also, Nifty 50 has earmarked a fresh record high of 15,835.55.
In terms of broader market indices, Nifty Small Cap 50 outperformed by surging 1.2%. Other indices advanced between 0.5-1%.
On sector-wise performance, Nifty Metal jumped by 1.3%, while Nifty PSU Bank and Nifty Auto zoomed by 0.7% each. All other sectoral indices were also in the green.
Index heavyweight RIL is the major booster for the upside in benchmarks after the company announced the Fluidized Catalytic Cracker Unit (FCCU) in our SEZ refinery at Jamnagar had to be taken for an emergency shutdown. On NSE, RIL stock skyrocketed by nearly 2%.
On Nifty 50, Coal India was in the lead with a 4.3% upside. While Power Grid surging 2%, ONGC and JSW Steel soaring by more than 1% each – also contributed to the winnings.
On the downside, on Nifty 50, Bajaj Finserv took the top spot tumbling 1% followed by Titan, Bajaj Finance, Wipro and HDFC Life down marginally.
On the Asian front, BSE Sensex was the top bull. While equities in Hong Kong also saw a sharp rally. South Korean & Taiwan markets were also in the green as technology stocks lead the gainers. On the other hand, equities in Japan and China were among the top laggards.
On Thursday, the Labor Department announced that the US consumer price index rose 0.6% in May 2021, after increasing 0.8% in the previous month. In the 12 months through May, US inflation has accelerated 5% which is the biggest year-on-year increase since August 2008.
On Wall Street, overnight, US markets settled mixed with Dow Jones giving up nearly 300 points rally to close flat while Nasdaq closes higher by 100 points. S&P 500 closed near its record high levels. Bond yields hit 1.63%.
Even though US inflation has risen to its highest level in nearly 12 years. However, investors have started to align their sentiments on the Federal Reserve’s view that inflationary pricing pressures will be temporary and if any changes in ultra-accommodative policy that will likely happen very gradually.
Markets look forward to higher bond yields but ignore the short term as risk-taking emerges at new highs.
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( With inputs from indiainfoline)