Mumbai: Better-than-expected recovery in Q2FY21 GDP, along with healthy GST collection numbers as well as in-line automobile sales’ figures, pushed the Indian equity markets higher on Tuesday.
Besides, healthy foreign fund inflows too lifted the markets higher.
Data regarding FII and FPI trading activity on BSE, NSE & MSEI in Capital Market Segment showed Rs 3,242 crore flowing in.
Globally, Asia-Pacific and European markets rose on the back of encouraging Chinese factory data prompted investors to look ahead to a global economic recovery.
Back home, consistent FII inflow along with hopes of accelerated development and roll-out of an anti-Covid-vaccine supported the market’s northward trajectory.
Among sectors, realty and PSU banks, IT, pharma, media and metals’ stocks rallied.
The Nifty50 on the National Stock Exchange (NSE) gained 140.10 points, or 1.08 per cent, to close at 13,109.05 points.
The S&P BSE Sensex ended at 44,655.44 points, up 505.72 points, or 1.15 per cent, from its previous closing.
“Nifty is not very far from its recent all-time high of 13,146 and going by the recent momentum it does not look tough for the Nifty to touch or breach it,” said Deepak Jasani, Head of Retail Research at HDFC Securities.
“On falls, 12,987 could provide support. We are seeing stocks that have underperformed so far coming into favour and this rotation continues.”
Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services said: “Indian equity market resumed its upward journey on the first day of December after ending November on a strong note.”
“Nifty finished November with 11.5 per cent gains – its second best monthly performance this year – led by record FII inflows and progress on Covid-19 vaccines. Going ahead, the overall structure of the market remains positive, but intermittent profit booking cannot be ruled out given the sharp rally in the past few weeks.”
“On the domestic side, market is likely to continue its positive momentum for some more time. Auto companies reported in-line sales numbers for November. Banks and financial stocks would be in focus ahead of RBI’s monetary policy scheduled on Friday.”
