Barring a couple of consumer discretionary stocks, all major names saw buying on Monday propelling benchmark indices to fresh record highs after US President Donald Trump signed pandemic aid bill.
Broader market also saw buying but volatility indicators also surged again, indicating nervousness in the market. Most shares are trading at frothy valuation that is keeping investors on toes.
Factors driving markets
Stimulus bills signed: Trump on Sunday signed into law a $2.3 trillion pandemic aid and spending package, restoring unemployment benefits to millions of Americans and averting a partial federal government shutdown, officials said.
Mass vaccination begins in Europe: Europe launched a mass COVID-19 vaccination drive on Sunday with pensioners and medics lining up to get the first shots to see off a pandemic that has crippled economies and claimed more than 1.7 million lives worldwide.
Brits prepare for Brexit: Britain on Monday urged businesses to prepare for Brexit, after the country clinched a trade deal with the European Union on Thursday that preserved zero-tariff and zero-quota access to the bloc’s single market.
BoJ divided on stimulus: Bank of Japan policymakers were divided on how far to go in tweaking the stimulus programme, with some calling for an overhaul of its strategy for achieving 2 per cent inflation, a summary of views voiced at the December rate review showed.
How are bluechips doing
After opening in the green, benchmark indices maintained their lead. At 9.44 am, BSE flagship Sensex was up 280 points or 0.60 per cent to 47,254. NSE benchmark Nifty followed and climbed 81 points or 0.59 per cent to 13,830.
“We have opened on a boisterous note and should be headed to 13,950-14,000 levels soon. This could be as early as this week. The weekly support is at 13,550-13,600 and any dip towards those levels becomes a good buying opportunity for higher targets,” said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
In the 50-share pack Nifty, ONGC was the biggest gainer, up 3.91 per cent. Tata Motors, JSW Steel, Tata Steel, SBI, GAIL, IndusInd Bank, Coal India, HDFC Life Insurance and Axis Bank were among other gainers.
Asian Paints was the top loser in the pack, down 0.30 per cent. TCS was another loser in the pack.
Broader market indices also traded with gains outperforming their headline peers in morning trade. Nifty Smallcap gained 1.29 per cent while Nifty Midcap rose 0.77 per cent. Broadest index on NSE, Nifty 500 was up 0.67 per cent.
GSPL, Dhani Services, Chola Finance, Welspun Corp, Strides Pharma and Indiabulls Realty were among major gainers from the space while BASF, Balrampur Chini Mills, Rashtriya Chemicals, Apollo Hospitals, Jubilant Food and Edelweiss were under selling pressure.
Global shares ticked up on Monday. US S&P futures last traded up 0.4 per cent. Japan’s Nikkei inched up 0.4 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.2 per cent, though trade is slow with many markets still closed for holiday.
Credit: Stocks-Markets-Economic Times