Market Watch: Sensex crosses 46K-mark for the first time; what’s next? – Economic Times

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Nikhil Agarwal and here are the top headlines at this hour.

Sensex gains for 5th day, settles above 46,000-mark for first time
Nomura projects India to be the fastest growing Asian economy in 2021
Protesting farmers reject govt’s draft proposal
Govt considering a looser inflation target for RBI, says report
S&P Global Ratings revises Tata Steel outlook to stable on earnings rebound

Let us take a quick glance at what happened on the Dalal Street today:

Investors became richer by Rs 1.2 lakh crore today as Sensex jumped 495 points to cross the 46,000-level for the first time amid persistent foreign fund inflows and positive cues from global markets.

After touching a record intra-day high of 46,164, Sensex settled at 46,103.50. Similarly, the broader Nifty rallied 1.02 per cent to settle above 13,500.

Asian Paints was the top gainer in the Sensex pack, rising over 3 per cent, followed by Kotak Mahindra Bank, Axis Bank, HDFC Bank, Infosys, Reliance Industries and ITC. On the other hand, UltraTech Cement, Tata Steel and Maruti Suzuki were among the laggards.

Mid and smallcaps underperformed their largecap peers. Sectorwise, the BSE Bankex, Energy, Realty, Finance and Information Technology indices each gained over 1 per cent. On the other hand, BSE Basic Materials and Power indices settled in the red.

While the huge liquidity and hopes over Covid vaccines have been keeping the market at its record high level, is the momentum sustainable in the near term? To discuss this and more, we caught up with Mayuresh Joshi, Head – Equity Research, William O’Neil India.

Welcome to the show, Mr Joshi.

1) Can you highlight a few factors which are keeping bulls in the driver’s seat?

2) What’s in store for the domestic equity market over the next one month? Can we expect some consolidation?

3) PSU banks have found a new vigour. Is the tide turning for them?

4) ITC is finally trading above Rs 200. Do you think it will gain rapidly now?

On the technical front, Nifty50 rose for the seventh straight session and settled above the 13,500-mark for the first time ever. The index formed a bullish candle on the daily chart and continued with its higher high – higher low formation for the eighth session.

We spoke to Amit Trivedi, CMT, Technical Analyst-Institutional Equities, YES Securities, to decode the charts for you.

Welcome to the show, Mr Trivedi

1) What does the Nifty chart tell you at this point of time?

2) What is your outlook for the next few weeks?

Globally, other Asian markets ended mixed while European markets traded in the green in early deals. US stock futures edged higher, suggesting that the major indices may grind towards new all-time highs after the opening bell, as investors bet on fresh fiscal stimulus spending.

That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Bye Bye!

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