Fomo buying and key portfolio allocation push Nifty 50 to a new high

livemint.com:

₹2 trillion in market capitalization today, propelling the total to a record ₹429 trillion."Most ministers retaining their portfolios signals policy continuity," remarked Manish Sonthalia, CIO, Emkay Investment Managers. This suggests that pending tasks from the second term will be addressed in the third term, with the countdown to the first 100 days and the upcoming budget already underway, he said."On top of that, what's fuelling this rally to new heights is the fear of missing out (Fomo) buying," believes Sonthalia.

The rapid rebound from the lows Indian indices hit on election day caught many by surprise. Now, investors are apprehensive about missing out on the upcoming rally, driving this buying spree and propelling indices to fresh peaks, he explained.While noting that the retention of key portfolios by current ministers has added to the expectations of policy continuity, Nirav Karkera, head of research at Fisdom, highlighted that there may be a case for intermittent declines as the structural nature of the current rally resonates with the widely held buy-on-dips call on Indian equities.On Wednesday, Nifty 50 settled 0.3% higher at 23,322.95 and Sensex closed at 76,606.57 points, up 0.2%.

What helped the indices close higher were gains in shares of HDFC Bank, Reliance Industries, Larsen & Toubro, Power Grid and Bharti Airtel. Though, both headline indices had risen about 1% intraday with Nifty 50 hitting a record high at 23,441.95 points.Nifty 50 has been unable to decisively close above the 23,400 level since the last three days.

Significant call writing was witnessed at 23,400 and 23,500 strikes in the benchmark index. So, according to Ashwin Ramani, Derivatives & Technical analyst, Samco Securities, “Significant