Stock market today: BSE Sensex and Nifty50 continued their year-end rally streak with a strong trading day on Thursday. While Sensex rose over 400 points, Nifty50 also crossed the levels of 21,800 for the first time in an intraday high. BSE Sensex closed the day at 72,410.38, up over 370 points or 0.52%. Nifty50 also closed at an all time high of 21,778.70, up over 120 points or 0.57%
Indian equities are reaching new peaks driven by optimism surrounding the country’s macroeconomic fundamentals and strong global market trends. Analysts expect the market rally to continue into the next year, with some instances of correction and profit booking.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services has highlighted the ongoing rally bolstered by robust institutional accumulation, particularly in prominent banks. Factors supporting this trend include favorable cues from the US market, consistent drops in US bond yields, and the dollar index resting below 101.
Notably, this rally has been led by high-quality large-cap stocks, propelling the Sensex beyond 72,000, he said. The volatility index VIX surpassing 15 stands as a crucial market indicator, suggesting potential high volatility ahead. While staying invested holds importance in a bullish market, caution is advised against entering the market at inflated valuations, as this could entail significant risks, he added.
US stocks saw modest gains in the previous session, heading towards monthly, quarterly, and yearly increases. Asian shares hit five-month peaks on Thursday, buoyed by expectations of potential rate cuts by the US central bank in the coming year.
Japan’s Nikkei experienced a 0.4% decline, hindered by a strengthening yen that limited its December advances. Meanwhile, China’s Shanghai Composite ascended by 1.1%, and Hong Kong’s Hang Seng surged by 1.6%.
Foreign portfolio investors were net buyers, with a total of Rs 2,926 crore on Wednesday, while DIIs sold shares worth Rs 192 crore.
