Market momentum, FPIs propel Sensex past 65,000
NEW DELHI : Indian stocks extended their rally on Monday, led by gains in HDFC twin stocks and strong buying activity in other index heavyweights. Buoyed by gains in the US market, local stocks saw a gap-up opening on Monday. Favourable economic data and sustained foreign fund inflows propelled the Sensex beyond 65,000, with the Nifty 50 surpassing 19,300, maintaining the bullish trend.
The Sensex, which closed above 64,000 on Friday, ended trading on Monday at 65,205.05, gaining 0.75%. With gains of 0.7%, the Nifty 50 ended the day at 19,322.55, close to the all-time high of 19,345.10 that it scaled during intraday trading. The latest rally is being fuelled by expectations that the US Federal Reserve might be able to call off its inflation battle faster than expected, analysts said.
The fear of recession is easing, supported by positive global data. Investor sentiments were reinforced by positive domestic data and favourable global cues, according to Vinod Nair, head of research at Geojit Financial Services. “The global market was supported by resilient economic data, avoiding the possibility of a recession," Nair said.
Economic activities are gaining strength, with the PMI (purchasing managers’ index) level at 57.8, indicating sustained demand for products and fostering a sense of confidence in the manufacturing prospects, he said. With no major bearish signs, the momentum in the domestic markets may continue, and analysts expect the Nifty to rally past 19,400 levels, though volatility is not ruled out from here on. The confidence in domestic markets is bolstered by the broad-based rally, in contrast to global markets that are predominantly experiencing a surge in technology stocks.
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